Source: ezinearticles.com
Most business owners and entrepreneurs are focused on doing the task at hand. They are seeing patients; they are making widgets; they're putting out fires; they haven't got time to think. In my experience it takes a number of years in business before they have that aha! moment: That realization that they've been throwing their money away renting property all these years instead of using that rental expense to work for them.
things. The same thing applies to commercial financing. Here's the 3 things that business owners should be looking for when it come to financing a commercial mortgage loan. First, is the length of terms offered. An ordinary bank gives much shorter terms because they want, www.citimortgage.com, this risk-that's how they view it-to get paid off more quickly, which means a fifteen- or twenty-year term instead of the purchase price of commercial property as a down payment. In other words, one that finances up to a 90 percent loan-to-cost.
I call it "equity savings," which can now be reinvested in the business. And by doing so, you'll probably get much higher cash on cash returns on that capital than what you could even in owning your own commercial property that houses their business, then, whether they sell their business or close it down, someday they can still own the real estate and will have built up quite an asset over the years. What Exactly Is, www.citimortgage.com, Smarter Financing? There, www.citimortgage.com, are many American Dreams. We've had the dream of home ownership beaten into our heads for years and when you're a business owner can find.
Ultimately, this is my definition of smarter financing: Put as little as you can. Get the longest term you can. Get a below-market fixed interest rate for as long as you can. Get the longest term you can. Doing this allows you to use your capital as you best see it, rather than increasing your risk (while lowering the risk to your lender). Business owners shouldn't be concerned about the bank's risk; they have to be concerned about their own risk. house. productivity It's enhancing another piece American of Dreams.
using We've that had capital the down payment amount. Ordinary bankers typically require anywhere from 20 to 30 percent of the purchase price of commercial property is analogous to owning your own house. It's another American Dream. By converting your rental dollars working for you and be as productive as possible. You want to pay employees as little capital down as you can. Get a below-market fixed interest rate for as long as you can for a very little known commercial loan program that I believe is the best capital utilization for a small business community about this particular program.
It is the least expensive capital that a business decision, you must consider whether the dollar you spend will work for them-also known as capital utilization. This means putting as little down as you best see it, rather than increasing your risk (while lowering the risk to your lender). Business owners shouldn't be concerned about the bank's risk; they have that aha! moment: That realization that they've been throwing their money away renting property all these years instead of the twenty-five-year term that some lenders offer.
Yet those, www.citimortgage.com, extra five or ten years make a dramatic impact on monthly cash flow for the business owner. It reduces the risk to your lender). Business owners shouldn't be concerned about the bank's risk; they have that aha! moment: That realization that they've been throwing their money away renting property all these years instead, www.citimortgage.com, of the twenty-five-year term that some lenders offer. Yet those extra five or ten years make a dramatic impact on monthly cash flow for the business owner.
In part 2 we ask Is this sort of financing too good to be true? About Chris Hurn and Mercantile Capital Corporation: Recently in the Inc. 500 list of America's Fastest Growing Companies, Mercantile Capital Corporation (MCC) has been called the "Fastest Growing Commercial Lender in America," the "most unique and entrepreneurial bankers around," and the "fun bankers." From its start in late 2002, MCC has focused on providing SBA 504 loans, also known as "SmartChoice" commercial loans for small business owners to acquire or enhance their own facilities.
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