Financial Compound has expertise to help business owners obtain high leverage commercial real estate financing. For businesses that operate within a property they own, Financial Compound is able to obtain high leverage, and low interest rate financing. Typical terms would be 85% loan-to-value, and a fixed interest rate of 5.75% for ten years, with a thirty year amortization table.
This long term, low fixed interest rate financing is attractive to business owners who have traditionally borrowed from their business lenders with business assets and other personal property as collateral. Due to the high leverage and unique characteristics of this financing, Financial Compound is able to facilitate large cash-out refinances and keep the borrower’s mortgage payments the same as before.
Normally when a business needs additional capital to run its business, the business owner turns to its business lender for products such as accounts receivable financing, balance sheet financing, or inventory financing. However, oftentimes a business owner is able to borrower with far more attractive terms when the real property is taken into consideration. A long term or short term mortgage can often fit well with a business owners capital requirements.
Commercial mortgage broker Financial Compound also sees many situations where a business owner has a long term lease for their property, with an option to purchase. Many times the purchase option is at an attractive price which further supports a mortgage product being an efficient financing type for the business owner.
We welcome business owners who qualify for these program to work with us to consolidate much of their business debt into cutting edge, fixed rate first mortgage financing.
Business finance loans are also available with cutting edge floating interest rates, in addition to fixed interest rates. A typical floating rate business finance loan might be at Libor plus 1.75%. This loan structure allows the borrower to reset its Libor index at increments of the borrower’s choosing between 30 days and 6 months.
Depending on the characteristics of the transaction, business finance loans can be the best financial product execution for the property owner. An experienced commercial mortgage broker can help the business owner research its financing alternatives and provide the business owner with a recommendation.