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A business loan to buy a business involving either golf courses or funeral homes is among the most difficult commercial mortgage scenarios. Golf course financing and funeral home financing involve special complexities not found in typical business financing situations. In both cases refinancing is usually even more difficult than the commercial loan to purchase. Reduction in Commercial Lenders - Golf Course and Funeral Home Financing There has been a significant reduction in local and regional banks offering business loan programs for funeral home financing and golf course financing. This of course compounds the already difficult commercial loan environment for funeral homes and golf courses due to fewer commercial lenders which are willing to provide reasonable commercial mortgage terms. Business Financing to Buy a Business Opportunity Business financing to buy a business opportunity is a special business loan variation in which commercial property is not purchased. The land and buildings in such a situation are typically leased for ten years or more. Similar to a conventional mortgage to buy a golf course or funeral home, competitive business opportunity financing is not easy to find. Business Loan Terms to Avoid - Funeral Home and Golf Course Loans Some regional and local banks will probably offer short-term business financing instead of a long-term business loan for golf course financing and funeral home financing. Another key term that can vary significantly is the percentage of value for the business financing. When buying or refinancing a funeral home or golf course business, it is of critical importance to avoid undesirable commercial loan terms, especially commercial mortgage conditions involving length of loan and percentage of value. Stated Income Business Financing Difficulties Although a stated income commercial loan has a certain number of benefits in specific circumstances, the use of stated income business financing is not recommended for a funeral home loan or golf course loan. A major limitation of a stated income commercial mortgage is the maximum business loan possible. A further limitation is the low percentage of value for stated income commercial financing involving either golf course financing or funeral home financing. Business Loan Difficulties - Commercial Mortgage Loan Value and Business Value Another complicating factor for funeral home financing and golf course financing is that the business value frequently exceeds the commercial real estate value by a significant amount. This is especially true when appraising a funeral home. Some commercial lenders will provide a commercial mortgage that includes only the commercial property value, and this will result in a much smaller commercial loan. Funeral Home and Golf Course Financing - Avoid Excessive Business Loan Fees Commercial borrowers should expect some legitimate and reasonable commercial mortgage fees during the initial commercial loan process. There are several commercial lenders that continue to take advantage of the severe lack of business loan choices for purchasing, building and refinancing a golf course or funeral home. One of the particularly unacceptable tactics is to charge exorbitant fees ($25,000 is not unusual) whether or not the business financing is successfully completed. Lender Choices - Golf Course Financing and Funeral Home Financing As mentioned earlier, the supply of acceptable business lenders for this kind of business financing has been reduced. An agreeable commercial mortgage for a golf course loan or a funeral home loan will depend upon a wise lender choice. The practical reality is that a commercial borrower should be prepared for the limited choices of truly qualified lenders for a business loan to buy a business involving funeral homes or golf courses. It becomes essential to choose a lender with the capability to successfully complete the required commercial loan process and simultaneously avoid the business financing problems described above. Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.
Article Source: http://www.philvault.com
Stephen A. Bush and AEX Commercial Financing Group, LLC will provide candid commercial loan - church financing advice. Free Working Capital Loan reports about refinancing or buying a business opportunity This article is available as a unique content article with free reprint rights.
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