Business Loan To Buy A Business - Golf Courses And Funeral Homes

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

There has been a significant reduction in local and regional banks offering business loan programs for funeral home financing and golf course financing. This of course compounds the already difficult commercial loan environment for funeral homes and golf courses due to fewer commercial lenders which are willing to provide reasonable commercial mortgage terms.

Business Financing to Buy a Business Opportunity

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.

Golf Course and Funeral Home Loans - Commercial Mortgage Terms to Avoid

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

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

For golf course loans and funeral home loans, the commercial real estate loan value is often less than the business value. This is particularly true with a funeral home appraisal. The problem with this disparity is that many business lenders will provide a business loan that includes only the commercial mortgage loan value, and this will produce significantly reduced business financing.

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

Commercial borrowers should expect some legitimate and reasonable commercial mortgage fees during the initial commercial loan process. There are several commercial lenders that continue to take advantage of the severe lack of business loan choices for purchasing, building and refinancing a golf course or funeral home. One of the particularly unacceptable tactics is to charge exorbitant fees ($25,000 is not unusual) whether or not the business financing is successfully completed.

Funeral Home Financing and Golf Course Financing - Avoid Problem Lenders

As mentioned earlier, the supply of acceptable business lenders for this kind of business financing has been reduced. An agreeable commercial mortgage for a golf course loan or a funeral home loan will depend upon a wise lender choice.

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.

About the Author:
Steve Bush and AEX Commercial Financing Group provide commercial mortgage - commercial loan and business cash advance - credit card processing assistance
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Article Originally Published On: http://www.articlesnatch.com

Tags: business loan

, buy a business

, commercial mortgage

, commercial loan

, business financing

, business

, finance

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