A commercial mortgage is a type of mortgage that is designed to fund real estate or other investments. They can be used for a variety of purposes, such as buying a business, refinancing an existing loan, or constructing a new building. Commercial mortgages are typically more complex than traditional mortgages and require a higher credit score. For more information about commercial mortgages you can contact Lendal Mortgages.
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There are a number of different types of commercial mortgages, each with its own benefits and drawbacks. Before choosing the right type of mortgage for your business, it's important to understand the basics of each type.
1. Equipment Finance: This type of loan is designed to help businesses purchase or lease expensive equipment, such as computers, trucks, or factories. The loan is usually repaid over a set period of time, with interest added on top.
2. Construction Finance: This type of loan is usually used to finance the cost of building a new structure, such as a shopping mall or office complex. The loan can be paid back over a set period of time, with interest added on top.
3. Commercial Refinancing: A commercial refinancing allows you to take out a new loan in order to pay off an existing one faster or at a lower interest rate than you originally agreed to. This can be helpful if your business is experiencing low income and high expenses – refinancing can lower your monthly payments significantly.
4. Secured Commercial Loan: A secured commercial loan is one that requires the borrower to put up some sort of security – typically property or money – in order to secure the loan. This protects the lender from any future financial losses should the business fail before the debt is repaid.