Bad Credit Commercial Loans – Procuring For Commercial Needs

If you think shopping for commercial land is not a cup of coffee for you then with bad credit commercial loans make it easy. While availing for bad credit commercial loans, borrower must be aware of his credit record as it’s of the utmost importance.

Bad credit commercial loans are especially designed for the borrowers who possess bad credit score to their credit history. Well, it’s true that bad credit scorer is always asked to pay high rates while procuring loans from the financial market. But, if carry a suitable search then he can avail bad credit commercial loans at competitive rates.

Bad credit borrowers are those who are tagged with bankruptcy, arrears, defaulters, IVA, and CCJ’s, in their credit account. With bad credit commercial loans borrower’s can easily meet their commercial needs and desires.

Bad credit commercial loans can be used for any commercial purpose. Some bad credit borrowers use commercial loans for investing in the existing business for expansion or up-gradation, buying a commercial land, starting with a new business, buying of raw material machinery etc.

With bad credit commercial loans, borrowers can avail either of two option secured and unsecured. To obtain secured option of bad credit commercial loans, borrowers have to pledge a security against the loan approval. Borrower is allowed to pledge the valuable asset as security that can fetch good monetary value for your commercial venture. Bad credit borrowers can avail the loaned amount ranging from £ 50 000-£5 00 000 for easy repayment option of 5-25 years.

If the borrowers don’t possess any valuable collateral then he can opt for unsecured option of bad credit commercial loans. In the unsecured bad credit commercial loans borrowers can avail the loan amount ranging up to £1 00 000 for the repayment tenure of 10 years.

Bad credit borrowers can also take up commercial loans from conventional or online mode. Conventional mode includes physical market that compromises of banks, financial institutions, leading lenders or private lending society. With online mode, borrower can avail bad credit commercial loans at an ease. Single click lands the borrower onto the financial market where can select the best option that offers higher rates at affordable deals. But, for that borrower is required to carry down a proper research and comparison.

Today, availing commercial loans with bad credit is no more a challenge as bad credit commercial loans are easily available to procure commercial needs.

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Commercial Loan Modification Solutions For Loans Coming Due

Is Your Commercial Loan Coming Due?

Commercial real estate analysts have predicted that approximately 1.5 trillion dollars of commercial loans will be maturing between now and 2013. Most of these loans were initiated during the peak times of real estate valuation, between 2005 and 2007. Since 2007, however, commercial real estate owners have watched as their investments have dropped in value by an average of 40%. Commercial real estate investors who have a loan that is now coming due are facing a dire situation. Most commercial properties purchased with financing during the past five years simply will not qualify for financing of any kind as underwriting guidelines and liquidity have changed dramatically. Below are the steps that a commercial property owner should take when they are evaluating their position for extending the terms of their existing commercial loan, attempting a loan modification or seeking a new loan.

1) Be proactive – The time to start planning for your commercial loan maturity was yesterday. Time is not on your side during this process. If you haven’t started already, then begin immediately to prepare yourself for a process that will be laborious and require some difficult decisions.

2) Be Realistic – Take a close look at any loan that will be coming due in the next year. Figure out the debt service coverage of the property if it had to be financed using today’s appraised value. Begin to contact commercial mortgage brokers and banks to see if your property will qualify for a new loan using today’s valuation and today’s underwriting guidelines.

3) Maintain the property — With rents and occupancy dropping in most markets across the United States many commercial property owners are finding that their net operating incomes have dropped as well. Facing a shortage of cash flow many owners are tempted to cut back on preventative and cosmetic maintenance. This could prove to be a big mistake. When trying to extend the terms of your commercial loan or obtaining a commercial loan modification the lender will certainly look closely at the physical condition of your property. Lenders want the best quality commercial properties in their portfolios to weather the economic storm.

4) Be Honest – In tough financial times like these, commercial property owners have to be honest when examining the prospects for the long term success of their venture. After examining the true financial condition of their property many commercial real estate investors may find that alternatives such as short sales or deeds in lieu of foreclosure make more economic sense than holding on to an asset whose value may take decades to recover.

5) Make a plan – It is never too early to make a plan. Don’t wait for the lender to tell you what to do. If you wait for the lender for guidance than they will automatically have the upper hand. Borrowers who are looking for a commercial loan modification should come to the bargaining table with a well conceived plan that demonstrates their need for help and shows the steps that will be taken to ensure the modification is a long term success.

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