We are taking a look at some necessary parts of day-to-day business operations
that nobody really likes to tackle and offer our suggestion for these areas.
Use the services of a consultant, who are there for you whether you need to
market vacuum cleaners or find advice
you need on which business to use for network
marketing lead generation. Using consultants means that you can put the
jobs you are unfamiliar with into the hands of professionals, people who truly
understand what they are doing. It means a lot of time saved so you can focus
on the business of your business.
Using consulting services can also mean saving a lot of money, as far as your
bottom line goes, as well. The issue of commercial mortgages is a good case
in point. Let's take a look at some of the considerations when it comes to seeking
a commercial mortgage in Toronto or elsewhere:
Underwriting standards: When a business seeks to gain a commercial mortgage,
the property itself underwrites the loan. It does not matter what kind of assets
or credits the business itself has at its disposal.
Type of mortgage: While the typical mortgage given to a company looking to
acquire office property is in the form of a balloon mortgage, there are some
exceptions. Businesses must therefore understand not only the concept of the
balloon mortgage, but what alternatives there are to this plan and how that
will impact the outgoing cash flow as well.
Interest rates and amortization: Do interest rates apply differently
to commercial mortgages than they do residential? And what kind of impact does commercial
property ownership have on a business' assets claims?
Debt service coverage ratio: This is one factor which many lenders will
use to determine the appropriate mortgage amount for a business. It's
a complex formula that is directly dependent on the incoming cash flow of a
business each month. Loan to value formulas are also used to determine the amount
of money a business; commercial mortgage will be. It may seem that you
would need to have the skills of banker to understand it all,
but if you wish to know the process, ask your mortgage consultant.
If it sounds a bit complicated, that is our point. Unless you specialize in
real estate, and commercial real estate in particular, obtaining a commercial
mortgage that is of value to your company can be a very tricky business. The
use of consulting services means that you can find the right mortgage at the
right place, saving a lot of time and money in the process.
Special thanks to: Rieker Pacha.