Commercial Mortgage Business Loan - Funeral Home or Golf Course

By: Stephen Bush..

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.

Business Financing to Buy a Business Opportunity

Much like a business loan to buy a golf course or funeral home that includes commercial property, workable business opportunity financing is difficult to arrange. A commercial loan to buy a business opportunity is a special variation of business financing in which commercial property is not included in the purchase price. The commercial property needed will usually be leased on a long-term basis.

Avoiding Problematic Commercial Mortgage Terms

It is critical to avoid undesirable business loan terms when refinancing or buying a funeral home or golf course business. Particularly important terms involve the percentage of value for the commercial mortgage and the length of the commercial loan. Regional and local banks will frequently offer short-term business financing instead of a longer-term commercial loan.

Difficulties with Stated Income Commercial Mortgage Financing

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.

When Commercial Real Estate Loan Value is Less Than 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.

Funeral Home and Golf Course Financing - Avoid Excessive Business Loan Fees

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.

A business borrower must be ready for the restricted number of qualified lenders for a golf course and funeral home commercial loan to buy a business. It is essential to find a lender with the resources to complete the complicated commercial mortgage process in a timely manner and concurrently avoid the business loan difficulties previously described.

Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.

Article Source: Loan Info Center

About S.A. Bush: Steve will provide candid commercial loan - working capital advice. Get a free series of Business Loan - Business Opportunities reports
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