When you’re looking to buy an industrial factory or warehouse, a retail strip shop or building or an office you need the right finance. Whether it’s for yourself to run your business from, or as a part of a diversified investment portfolio, the right finance is not only one with the cheapest rate, but in commercial finance there are a lot of other factors we take into account when recommending a product.
Things like the:
- other products you take up
- term of your loan
- strength of your business
- covenants on the loan (including reviews)
will all go a long way to affecting your bottom line and whether your finance is a good deal you’ll want to keep, or is something you should refinance and change quick smart.
One of my favourite sets of clients to deal with are the businesses who move from renting to owning, or moving their business premises into a larger space. Ideally moving from their home or garage into their own factory or office.
The reasons for this are that as a finance broker, it’s my time to shine! I get to work closely with a business and add real value, liaising with the accountant and seeing the business grow into the next phase.
In many cases for a commercial finance deal the business will simply meet with their bank and enquire about a commercial loan for the business. While this may get the job done, it’s not the most efficient or effective way of getting a commercial property loan.
Unlike in the residential loan space where there is more information available online than anyone could read in a lifetime, the commercial loan space lenders are much more reserved. They keep their cards close to their chest and don’t divulge their rates and fees and terms and niches to the public.
One of the reasons for this is simply because they don’t have to, there’s less competition, but mostly, it’s because the commercial finance market is an ever evolving beast. Commercial loan interest rates are mostly negotiated, so there’s little use in publishing them.
As a finance broker, negotiating the commercial interest rates is one of my services – it means you don’t have to just take what you’re given. I know how far we can push and what other lenders have on offer, which makes the process far less stressful.