Articles by Richard Heaney on ArticleSnatch.com

Why does your commercial loan application get rejected?

Thu, 26 Mar 2009 00:00:00 -0400

Commercial loan applications are often rejected because of some problem in the documentation or some other reason. While this rejection does throw the business plans off-track for the applicant, it also makes it difficult for the borrower to approach other lenders since each rejection is recorded in the credit history and this is first thing a lender checks. More often than not, rejections happen due to problems in credit history or documentation. Besides, an application can also get rejected if the business idea is a little too unique for traditional commercial banks even if the borrower has furnished satisfactory documents and his/her credit history is clear of any problems. This article lists some of the most common reasons for commercial loan application rejection and provides a check list and some questions which must be asked before filing an application for a commercial loan or commercial mortgages. Reasons for commercial loan application rejection Reason # 1: The business plan is not up to the expectation and satisfaction of the loan officer or loan underwriter. **End Summary** Topics: Business mortgages]]> Commercial mortgages]]> Commercial loan]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, commercial loans , business mortgages and various other loan options. His write-ups highlight the different aspects of the credit market and broking firms providing commercial mortgages in UK.

Fundamentals of Buy-To-Let Mortgages In The UK You Must Know

Mon, 23 Mar 2009 00:00:00 -0400

Buy-to-let mortgages is common way in which most landlords in the UK raise money to buy properties which can be further rented to earn them a steady income in the long term. Though the current recession and resulting credit crunch has shrunk the market as also the rate of loan approvals, some good deals for buy to let commercial mortgage are still available if you know how to go about it correctly. This article will help you clear some doubts with regard to buy to let mortgages in the UK. What are buy-to-let mortgages? It is much similar to the standard mortgages in terms of rules and regulations and interest rates but there is one big difference - buy to let mortgage lenders in UK take potential rental income into account when deciding on how much to lend. This annual rental income ought to cover somewhere between 120 percent and 150 percent of the repayments. The excess rent would go in servicing the maintenance and would cover the lean months when there will be no occupancy of the property and hence no income. How do buy-to-let mortgages work? **End Summary** Topics: business mortgages]]> buy to let mortgages uk]]> buy to let commercial mortgage]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, business mortgages , buy to let mortgages in UK , and various other loan options. His write-ups highlight the different aspects of credit market and broking firms providing buy to let commercial mortgage .

An Overview of Small Business Mortgages

Mon, 09 Mar 2009 00:00:00 -0400

A small business mortgage loan is something to which small businessmen generally turn to whenever there is a requirement to buy some business property or any other business asset. Business mortgages are offered by banks for around 20 years, during which the lender has legal rights over the asset purchased until the loan is fully paid back by the borrower. Getting this type of loan from any reputed UK based company is not tough if you have a satisfactory financial record and have the ability to repay the loan. You will need to convince the lender about your capability to repay back the loan in time. Also be prepared to make a down payment of 20-30 per cent of the purchase price. Before applying carefully consider the type of interest rate which suits your business and financial position best. You need to choose between a variable and fixed interest rate. The variable interest rate changes as per the current market rates and there is a higher risk element involved. On the other hand, a fixed interest rate means you need to pay a constant interest rate where you can benefit if the market price increases. **End Summary** Topics: business mortgage]]> business mortgages]]> business mortgage UK]]> buy to let commercial mortgage]]> commercial property mortgages]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance specializing in writing on financial planning, business mortgages , commercial property mortgages and buy to let commercial mortgage .

Commercial property mortgages what borrowers should do

Wed, 11 Feb 2009 00:00:00 -0500

Commercial property mortgages are generally used by businesses to acquire business assets, business expansion, business real estate refinance etc. This type of loan is secured by collateral in the form of commercial property, which will be used by the lender to recover the full amount of the loan outstanding in the event of default on the part of borrower. There are mainly three sources of commercial property mortgages - banks, third-party lenders and commercial mortgage brokers. Banks are usually the first stop for any kind of loans and commercial property loans are no exception, however borrowers with a bad credit record or who are new to the business may find getting approval from the banks rather difficult. Third party lenders usually serve such borrowers. They can provide mortgages more quickly and with less documentation. Third-party lenders charge a significantly higher interest rate than banks. Commercial mortgage brokers don't provide mortgages directly. Instead, they investigate many banks and lenders to find you the right mortgage suitable for your business and at the most competitive price. While commercial property loans are a very common business activity, the requirements to qualify for such a loan are quite strict. **End Summary** Topics: commercial property mortgages]]> buy to let commercial mortgage]]> business asset finance]]> commercial mortgage quote]]> commercial property loan]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance specializing in writing on business asset finance , commercial property mortgages and buy to let commercial mortgages .

Asset Finance Leasing A Primer

Fri, 09 Jan 2009 00:00:00 -0500

Asset finance is a boon to small and medium enterprises as it saves them precious working capital and helps them to improve their cash flow by letting them lease/hire expensive business critical assets rather than buying them outright. In general asset finance is available through two routes - hire purchase and leasing. Under a hire purchase arrangement, the ownership gets transferred to the customer at the end of the hiring period while in a leasing arrangement the customer must return the equipment back to the leasing company. In both the options, the customers must pay an agreed monthly or quarterly rental for the length of hiring/leasing period. In this article we will talk about leasing and its various aspects. This non-transferring of the ownership is the fundamental characteristic of the lease arrangement. During the period of lease, the customer pays monthly or quarterly (or whatever is agreed) to the leasing company. This rental payout is deductible from income in some cases (except for a finance lease). **End Summary** Topics: asset finance]]> asset finance leasing]]> asset finance management]]> finance]]> loans]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance specializing in writing on financial planning, asset finance leasing and asset finance management.

A Guide To Successful Commercial Property Loan Application

Mon, 08 Dec 2008 00:00:00 -0500

Whether it is the expansion of the existing business or the start of a new business, a commercial property loan helps businesses acquire real estate such as land to set up manufacturing plant, office space, space for staff quarters etc. Much like a home mortgage, the property purchased is held as collateral against the loan. However there is a major difference between commercial mortgages and home mortgages. While home mortgages are relatively easy to obtain, commercial mortgage approval requires a thorough scrutiny of the papers, credit report and financial viability of the company and of the location, condition, and viability of the property you're interested in buying. A solid business plan and careful evaluation of the property are essential for getting approval for a commercial property loan. Here is how you can improve your chances of getting approval for your commercial property loan application. Choose the right property The characteristics of the property are the first crucial aspects any lender would scrutinise. So choose a property which is legally clean, situated in a good location, has all the required environmental approvals and is in good condition. **End Summary** Topics: Commercial mortgages UK]]> Commercial property loan]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance, specialising in writing on financial planning, commercial property loan , commercial mortgages in UK etc.

Types of Asset Finance - How to Choose The Right Option

Thu, 27 Nov 2008 00:00:00 -0500

Businesses run on assets. They either manufacture products or provide services by making use of a variety of business assets such as computer systems, photocopiers, office furniture, restaurant equipment, plant, machinery, commercial vehicles, company cars, forklift trucks and buses. Companies acquire these assets either by purchasing them outright using their reserve cash or through commercial loans or having them financed through asset finance options. Asset financing has become quite popular in recent years since this method allows one to acquire business critical assets without making large capital investments. It also helps businesses to keep abreast of the latest technological developments as they can get new assets as and when they require them without having to arrange for large amounts of funds through commercial loans or some other arrangement. Asset Finance Types Operating Lease In this type of lease, the lessor remains the owner of the asset and he rents it to the lessee for a particular period (ranging from one to five years). Thereafter according to his particular need, the lessee can either renew the lease or return the asset to the lessor. **End Summary** Topics: asset finance]]> Commercial Loan]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, Business asset finance and various other commercial mortgages . His write-ups highlight the different aspects of credit market and broking firms providing the asset finance.

A primer on buy to let mortgages

Thu, 13 Nov 2008 00:00:00 -0500

Since its inception in 1996, the buy to let mortgage has provided investors, cash rich individuals, professional landlords etc. with a comparatively safe investment avenue which is not only bound to appreciate in the long term, but also provides a steady and reasonable return in the form of rent received from tenants. Given the current bloodbath in the real estate market and the recessionary trends in the economy in general, such a positive perception on buy to let mortgages in the UK may be hotly contested by doom sayers. However, when one talks of buy to let mortgages, the description â€˜long term investmentâ€™ immediately comes to mind. Undoubtedly, property investments are long term investment options by nature where one needs to be prepared to wait for the returns to come in over a longer time period as the property gradually appreciates in value. For anyone else looking for immediate gains based on speculative investments, such as in the stock markets, one needs to be prepared to make profits as well as suffer setbacks from the volatility in the market. Coming back to our buy to let mortgage discussion letâ€™s first see why buy to let investment makes sense. **End Summary** Topics: best buy to let mortgages UK; buy to let mortgage]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, buy to let mortgages UK and various other loan options. His write-ups highlight the different aspects of the credit market and broking firms providing the commercial mortgage in the UK.

Going for A Buy to Let Mortgage Makes Sense Even Today

Thu, 23 Oct 2008 00:00:00 -0400

The day Lehman Brothers went under, it formally sounded the start of difficult times for the mortgage business. Though the fault lines were apparent since the sub-prime crisis had rocked the financial markets last year, this event seems to have lent a terrible blow to the mortgage market. But is it really so? Isnâ€'t this just a temporary loss of confidence in the market? Have asset finance and buy to let mortgage deals for deserving borrowers evaporated completely? The answer is a big No! Mortgage is essentially a significant business for the lenders and the current crisis is not because the business model is bad. It is mainly due to over aggressive investment in non-deserving borrowers. So sooner or later lenders will start disbursing loans and mortgages again with hopefully one big difference the selection criteria for the borrowers will be tougher and more regulated. So what does this mean for the borrowers? It means that the days of reckless buying and speculations are over and one should look for long term profits so far as real estate investment is concerned. There are no problems in long term prospects because people will always need quality residential and office properties. **End Summary** Topics: buy to let mortgage]]> asset finance]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, buy to let mortgages, asset finance etc. His write-ups highlight the different aspects of buy to let mortgage available in UK.

Financing Options for a Business

Wed, 10 Sep 2008 00:00:00 -0400

Businesses need money to run or expand their current operations or to start a new business. To fund the requirements they mainly take two routes – equity financing and debt financing. Some businesses which are facing a fund shortage also resort to the commercial mortgage route to fund their requirements. Equity financing – Equity financing involves raising the required capital in exchange for ownership interest in the business. This stake is offered in the form of shares and it can either be offered to the general public through public issue route or to private/institutional investors through the private placement route. In case of private placement some/total transfer of management control is also involved and the amount of capital extended depends on the extent of control offered. Debt Financing – When a business borrows money from an outside source and promises to return the money along with an agreed upon interest within a stipulated time, it is said to have taken a debt to finance its business needs. Debt financing can take the shape of bonds, debentures, bills, or notes to be sold to individual and/or institutional investors. **End Summary** Topics: commercial mortgage]]> commercial property loan]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning and commercial property loan. His write-ups highlight the different aspects of commercial mortgage in the UK.

A Guideline On Buy To Let Mortgage Loans

Tue, 05 Aug 2008 00:00:00 -0400

Buy to Let mortgage is a type of loan used for purchasing property which you can let out to rent after getting the ownership. Especially in the UK, Buy to Let properties have become quite popular. While some people are seasoned investors, others look at it as a source of income. Let’s discuss the various aspects of the Buy to Let mortgage investment route. Different Types of Buy to Let mortgages available in the UK In the UK, there are many lenders who offer various types of Buy to Let mortgage loans. Some of the most common ones are: -Capped Buy to Let Mortgage -Fixed Rate Buy to Let Mortgage -Minimum Status Buy to Let Mortgage -Non Resident Buy to Let Mortgage -Self Certified Buy to Let Mortgage -UK Limited Company Buy to Let Mortgage -Variable Rate Buy to Let Mortgage Benefits of Buy to Let mortgages Over the past five years, property prices have risen 85 per cent across the UK as a whole, according to the Halifax House Price Index. Buy to Let mortgages allow property investors to benefit from any appreciation in property rates. **End Summary** Topics: buy to let mortgage]]> buy to let mortgages uk]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, buy to let mortgage and various other investment options. His write-ups highlight the different aspects of buy to let commercial mortgage in the UK.

How Business or Commercial Mortgages Function

Wed, 09 Jul 2008 00:00:00 -0400

A commercial mortgage is a specialised commercial loan where the borrower has to put a real property as collateral against the loan. The lender has a legal claim over the property under a commercial mortgage loan until the loan has been fully repaid. Since this business mortgage is flexible and affordable, there has been a steady increase in the number of people applying for such types of commercial loan. The best part of such business and commercial finance options are that they can be structured according to the needs and requirements of your business. However, there are two most important aspects of commercial mortgage loans - interest rates and the repayment schedule that need to be considered while applying for a loan. Let us first focus on the two different interest rate options available in business and commercial mortgage loans: Fixed Rate: On a fixed rate commercial mortgage loan, the interest rate on the principal amount is negotiated and agreed at the time of approval of the loan by closely examining the risk involved and the current market rates. Here the interest amount is the same until the loan is amortized. **End Summary** Topics: commercial loan]]> business mortgage. commercial mortgages uk]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, business mortgage , and investment options. His write-ups highlight the different aspects of commercial loan and mortgages available in the UK.

Attributes and Advantages of a Commercial Mortgage Loan

Thu, 12 Jun 2008 00:00:00 -0400

A commercial mortgage is a type of loan which is taken from a financial institution by using real estate as collateral. This loan is available only for business purposes. The borrower needs to be a business partnership, incorporated business, or a limited company. In case of default in loan repayments, lenders can seize the collateral to recover the loan. Uses of Commercial Mortgage Loans -For purchasing the premises to conduct business. -For the extension of existing premises. -For making residential and commercial investment. -For developing property in other manners. How to Qualify To get a commercial mortgage loan in the UK, the borrower needs to fulfill some pre-defined qualifications related to: -the borrower’s company credit history -income resources -the worthiness of the guarantor Commercial Mortgage Loan versus Other Loans In the UK, commercial mortgage loan is more popular as compared to other types of loan due to its certain advantages. These include: -In a commercial mortgage loan, the borrower can have the full ownership of the loan as the lender can only claim an interest return on the mortgage. In no way, the lender can have a share of the percentage of ownership. **End Summary** Topics: uk commercial mortgages]]> commercial mortgage]]> business commercial finance mortgage]]>]]> About the Author: ]]> Richard Heaney is a writer on business and finance. He specializes in writing on financial planning, business commercial finance mortgage and commercial mortgage options.