Business property owners understand the governing rules on refinancing property(s) and a good many potential buyers of commercial property understand what’s involved to acquire a property. For those who don’t know, this write–up is NOT targeted at you however, here’s the ‘must knows’ before we proceed with today’s blog; Appraisal, good credit, environmentals depending on location and history, taxes on existing business are current, normally 25% down however solid covenants and guarantee’s can lend higher – 90%, solid business plan, proof of ability to carry for at least one quarter, preferably more – the more liquidity the lower the risk hence both higher ltv opportunities and discounted rates.
Ok, let’s get back to commercial credit financing. For those of you who will be refinancing this is aimed at you. Does your banker truly compete for your business? As you know as you deal with this everyday in your own business, there’s only one way to find out – compare. For a business owner it’s a real struggle to shop around regarding time constraints…but I know you’d love too. Having said that, just shopping around still doesn’t procure optimum deals. Why? Great question, so here’s why.
There are a multiple of hurdles to deal with in this financing arrangement; interest rates, guarantees’, reporting structure and fees. Which is most important to you? We say all of them! Seriously. Quality clients provide many benefits to a banker – profits and top line growth. Our bankers care about procuring the business which brings both profits and top line growth…over time. That’s a successful business structure and the one we promote ourselves on to our commercial financing clients. Well, how does this help? I don’t think I’ve ever lost a deal to costs/fees or Interest rates provided. Commercial Finance origination is quite similar to a mortgage broker however our business bankers handle ALL of our financing needs – business and mortgages. Our volumes dictate pricing that will never lose to a nominal property owner overall price/cost comparison. Our value is in the holistic cost…you save with us, that’s our guarantee.
So what prohibits comparison shopping that a banker counts on? Of course, it’s that dreaded deeds of proving who you are. Not surprisingly, a good many entrepreneurs don’t mind this because of the key reason business owners do what they do – they love it and won’t leave a dime on the table if they don’t have too. Remember, entrepreneurs work the hardest which is why my clients are all successful. Don’t under-estimate the psyche and drivers of business owners – relentless pursuit to succeed and flourish.
Trust an accredited business financing advisor before you accept the first deal you’ve been presented. By the way, we do trust our banker, she’s won way too many deals not to…how many of you can said that?