Secured Loans for Commercial Property Acquisitions
Contrary to popular belief, owning and operating a viable business does not necessarily mean that major banks and lenders are willing to offer a helping hand. Increasingly, banks are becoming so selective with who they will and will not support that businesses at all levels looking to expand sometimes find themselves facing a brick wall.
Of course, it’s understandable that growing and on-going economic uncertainty makes it difficult for conventional lenders to know where and how their own money is best invested. Nevertheless, this doesn’t help those in the business world who desperately require expansion and development capital, in order to allow their businesses to grow, evolve and succeed.
In instances where traditional lenders are unable or unwilling to help, the alternative is to consider a secured business loan. Regardless of what it is that has been standing in the way of obtaining financial support from a conventional lender, there’s every chance a secured loan could be the answer.
The reason being that just as long as you have the required collateral to secure the loan, that’s really all there is to it. Assuming you own and operate a business of some kind, this will usually mean that you have a variety of assets that can be put up as collateral. From commercial or residential property through to business equipment to vehicles and even intellectual property, loans can typically be secured in a wide variety of ways.
The Benefits of Secured Loans
While conventional financial products and services have their own unique place in the market and value, secured loans have the potential to benefit the modern business in a multitude of ways:
- Speed. For example, it is usually possible to get hold of the capital required by way of a secured loan much faster than any comparable approach to commercial financing. Even in the case of relatively large sums, payouts are extremely prompt.
- Simplicity. Quite the opposite of conventional commercial loans, the application process for a secured loan can be comprehensively simple. Once again, it generally all comes down to the simple proviso of being able to provide the required collateral.
- Qualification. In order to qualify for a typical business loan, it is usually necessary to provide extensive evidence of the company’s current performance, have a strong credit record and generally meet a wide variety of demanding criteria. With a secured loan, just as long as you have the required collateral to cover the value of the loan, very little else matters.
- Flexibility. Loans that are secured with collateral also tend to be considerably more flexible, when it comes to things like repayment periods and so on.
- Borrowing Costs. Depending on the nature of the loan and from where it is obtained, a secured commercial loan can also be comprehensively more affordable than a comparable traditional financial product.
With such a wide variety of options to choose from, it pays to speak to an independent broker or financial adviser, before deciding which way to go. In any case, any business on the lookout for financial support for property acquisition purposes would be wise to consider the benefits of a secured loan.