Refinance Your Commercial Loan
Is your business feeling a cash squeeze? If you need to refinance a commercial loan for any reason, Refinance Commercial Loan can help get your commercial mortgage refinanced fast.
The mortgage on your commercial real estate is just like the mortgage on your home. As the economy changes, homeowners and businesses alike need to readjust their finances to improve cash flow and keep their bank balance intact. Since your commercial loan is probably your largest fixed monthly expense, it makes sense to look for ways to lower that cost.
Here are some things to consider before you decide to refinance a commercial loan. If after reading this you decide you want to discuss refinancing your commercial mortgage loan with a professional, please contact us.
Avoid foreclosure on your commercial loan
There are several ways you can go about avoiding foreclosure on your commercial loan.
- Hard Money Bridge Loans
- Peer to Peer Loans
- Commercial Mortgage Modifications
Hard Money Bridge Loans
If you are behind on your commercial mortgage payments, it’s important to look at creative ways to get back into the black. You are not likely to be able to refinance a commercial loan if it is delinquent, and one way to bring your conventional loan out of delinquency is to refinance using hard money bridge loans.
The terms of a hard money loan are not going to be very favorable; typically, the LTV (Loan To Value) ratio is between 60 to 70% of the quick sale value, meaning a low-balled value that the hard money lender believes he or she can get for the property in a fast-sale situation. This means the amount of money you can borrow is limited, but if that is enough, it may be an option.
Peer to Peer Loans
A better option may be peer to peer loans, which are loans made by private parties. Peer to peer lending generally involves unsecured loans, and requires a higher interest rate because of that. The benefit is that the terms are more negotiable for peer loans, because you are generally negotiating with a private party.
For this reason, you may be able to obtain a peer loan to bring any delinquent payments up to date prior to seeking to refinance commercial loan conventionally. If you can convince a peer lender of the viability of your business, they may be willing to take on the risk. However, beware that peer to peer lenders are typically savvy business professionals and will ask for a lot of backup documentation and clear legal contracts.
Commercial Loan Modifications
Commercial loan modifications are being requested by borrowers more and more as commercial real estate owners start to feel the pressure from a tightening economy. This option, rather than refinance your loan, would simply renegotiate your loan with the lender on more manageable terms.
Refinance commercial loan
While all of these options are available and may be used advantageously in various circumstances, refinancing your commercial loan is probably your ideal course of action. When you’re ready to refinance your commercial mortgage, please contact us.