Small Business Financing: Is All Hope Lost?
We may be in that pivotal post-recession phase but there is no doubt at all that the economy still faces a great deal of struggle. In the wake of the infamous Libor rates scandal; the nation's longest running banking authorities have struggled to loosen the reins on their lending. Despite the large sums of money injected by the government to kick start the economy through the Quantitative Easing and Funding for lending; banks remain locked in resistance and as a result the small business owner is now more than ever struggling to receive vital financial lending.
It has become evident that unless rock solid evidence of a financial background is provided alongside a substantial deposit sum; the small business owner is deemed far too much of a risk to take and hence is immediately rejected, however all is not lost.
In the wake of banking scandal and lending strain and of course the deep cracks left behind by the economic recession; the alternative lender has now gained a great deal of popularity, why? Because unlike our nations long standing banking authorities; the alternative lender will never immediately reject a prospective client and will work find to find the ideal solution to benefit the business.
Commercial mortgage loans are deemed a pivotal form of business finance and are offered by a range of commercial brokers throughout the nation. The benefit of the broker is that, in contrast to the sales nature of banking loans; the broker is somewhat of a middle man or an intermediary who will act on behalf of your business to scour a database of potential lenders and in effect a range of potential lending opportunities.
Using your business plan and financial background to deem your suitability; a lender will work alongside you to source the ideal solution required to secure the longevity of your business. There will be no hidden charges and no surprising commercial loan rates; with a great degree of transparency you will always remain in control of the situations provided.
If you fear that you may not be able to afford a commercial mortgage, a reason that may have caused previous loan rejection; then you do not have to overly worry as a broker will use specific markers to determine the risk level of your business. Using what is referred to as the loan to value ratio to determine the desirability of a candidate or the debt service coverage ratio to determine the overall risk; a financial broker will determine whether a commercial mortgage is right for your business in the long run and if not, then a further suggestion may be made.
Naturally, the economy has created a difficult environment for all, particularly the small business owner but nothing is impossible and with a little resilience and effort; the ideal financial solution can most definitely be sought.
About the Author
Having worked at a number of high profile locations; Andrew has dealt with a variety of financial issues and can provide an abundance of knowledge and information on anything and everything you need to know. Please visit http://www.charlestonfinancial.co.uk/ for further information on commercial mortgages
Tell others about
this page:
Comments? Questions? Email Here