Commercial Loans

Commercial loans do take the borrowers personal income information and strength into consideration, but the loan amount is calculated based on the amount of income the property produces. Lenders use many different ratios and criteria to underwrite each file, but in most instances, the amount of income the property will produce will determine how much money a commercial lender is willing to lend.

The next thing a lender is going to consider will be the property type they are going to lend on. Usually a lender will tier property types from the most desirable down to the least desirable. Office and retail buildings usually rank in the higher tiers while buildings that could require special use permissions or may cause environmental problems are placed lower. Churches are often unattractive properties because they require a special use permit for operations. Gas stations and automotive repair shops are also unattractive properties because they could potentially contaminate the land on which they operate, such as oil or gas seeping into the soil. The less attractive the property type, the higher the risk assessment, thus the more a lender is going to charge for the money they lend.

Commercial Property
Debtor Financing
Business finance solutions including cash flow financing

Commercial property

Commercial loans Property includes office buildings, industrial property, medical centers, hotels, malls, retail stores, shopping centers, farm land, multifamily housing buildings, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as commercial loans property for borrowing and tax purposes.

Commercial real estate is commonly divided into four categories:

Categories of Commercial Real Estate
Category	Examples
Retail	medical centers, hotels, malls, retail stores, shopping centers, public houses^[2]
Office	office buildings
Industrial	industrial property, office/warehouses, garages, distribution centers
Multifamily (apartments)	multifamily housing buildings

Of these, only the first three are classified as being commercial buildings.

Debtor Finance

Debtor finance is a generic description of a funding process, based on the value of a business’ accounts receivable ledger. Debtor finance is also marketed as invoice discounting, factoring, cashflow finance, asset finance, invoice finance and working capital finance.

Types of Mortgages

Lake Macquarie Mortgages & Commercial Finance will help you decide which plan is best for you. It is always a good idea to do a little research on what kinds of plans are available, so that you can better understand the plans proposed to you. Briefly, here are some of the types of loans you might be considering.

Repayment mortgage: This is the most common, and is the simplest to understand. Repayment mortgages work on a time-line basis, and unless there is a problem with your payment schedule, your loan will be guaranteed to be paid in full by the end of your commitment.
Endowment mortgage: This type of loan is paid bi-monthly. The first payment is for the interest on your loan, with the second being a fee paid to an insurance company for an endowment policy.
Interest only mortgage: This plan focuses on paying back the interest accrued first, leaving the capital owed to be paid at the end of the payment schedule.
Pension mortgages: This mortgage is also paid in two categories, bi-monthly. The first payment is for the interest on your loan, and the second is for a pension policy premium.

Protecting Your Home Mortgages

When acquiring a home equity loan, you will consider home mortgages payment insurance. In the event you are not able to pay for your monthly bill, this type of insurance will assist you.

Without this insurance, and in the event of a financial mishap, you could lose your home. There are several types of this insurance coverage, and they will vary depending on your financial background, whether you are self-employed, as well as whether you are a part-time employee.

After considering your options, it’s time to apply for a home mortgage loan.

Email Lake Macquarie Mortgages & Commercial Finance and arrange an appointment.

Once you apply, you will have a clearer picture as to exactly what types of loans are available to you for your financial situation.