Buy a Business - Funeral Home and Golf Course Business Loan

A commercial mortgage for buying a business involving a funeral home or golf course is usually a difficult business loan to arrange. Funeral home financing and golf course financing involve problems not found in most commercial loan situations. Refinancing for both of these business categories is likely to be more complicated than the original business financing for purchase.

Fewer Business Lenders - Funeral Home and Golf Course Financing

To further compound the already difficult business financing for either a funeral home or golf course, fewer commercial lenders are providing competitive commercial mortgage business loan terms. There has especially been a significant reduction in the number of local and regional banks providing commercial loan programs for both funeral home loans and golf course loans.

Buy a Business - Business Opportunity Financing

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.

Avoiding Problematic Commercial Mortgage Terms

When buying or refinancing a golf course or funeral home business, it is important to avoid undesirable business financing terms. These terms include the length of the business loan and the percentage of value for the commercial loan. Some local and regional banks are particularly likely to offer short-term commercial financing instead of a long-term commercial mortgage.

Stated Income Business Financing Difficulties

The use of a stated income business loan is not recommended for a golf course loan or a funeral home loan. One key limitation is the low percentage of value for stated income business financing involving funeral home financing and golf course financing. Another critical limitation of a stated income commercial loan is the maximum commercial mortgage loan that will be approved.

Business Loan Difficulties - Commercial Mortgage Loan Value and Business Value

Some commercial lenders will offer a commercial loan that reflects only the commercial real estate value, and this will result in a reduced business loan. For golf course financing and funeral home financing, the business value is often more than the commercial property value. This will almost always occur with funeral home appraisals.

Exorbitant Commercial Loan Fees for Funeral Home and Golf Course Financing

Business owners should be prepared for reasonable business financing fees during the beginning of the business loan process for golf course financing and funeral home financing. There are a number of business lenders that have chosen to take advantage of the shortage of commercial loan choices for building, purchasing and refinancing a funeral home or golf course. A common tactic is to charge excessive fees of $25,000 and more even if the commercial financing is not finished.

Lender Choices - Golf Course Financing and Funeral Home Financing

Successful business financing for either a funeral home loan or golf course loan will depend upon an appropriate choice involving the commercial lender. As noted above, the number of viable commercial lenders for this specialized type of commercial mortgage is rapidly shrinking.

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.myaddirectory.com

Contact S.A. Bush at Stated Income Commercial Financing - Business Loan Solutions for AEX commercial real estate financing - commercial loan strategies.

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