Commercial Loans Can Be a Problem - How About Different Approach?
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If you are in the market for commercial loans because your current loan is due for refinancing, you may be wondering whether the much vaunted recovery in the credit market has evaporated. It seems as if those commercial loans that are available are focussed very firmly on those with prime commercial properties, and good quality tenants. This dearth of availability is particularly worrying for those with several commercial properties, because ultimately your property is at risk of repossession if you cannot refinance your existing loan.
Where do you start when looking for commercial loans? The obvious starting point is your commercial finance broker. They are well placed to have good access across the market, and have usually been able to tailor commercial loans to suit their clients' needs.
The problem is that they are only acting as intermediaries in the credit market - and the real issue is that the range of affordable commercial loans they can select from has shrunk. Attempting to bypass them, in order to access commercial loans directly from the banks and credit houses, will also end up hitting the same problem- credit supply is tight, and may well be tightening further in the near term.
So what is influencing the poor outlook for the commercial loans market?
The first problem looming on the horizon is the prospect of a 'double dip' recession- this is looking increasingly likely, because of the deep cuts in government spending in the UK. Many forecasters now feel that the UK's economy will be back in recessionary territory in next year or so. This makes the banks more reluctant to lend than they have been whilst the economy appeared to be pushing itself back up.
Then there is Basle III, the latest revision to the risk regulations that international banks must abide by. These cover how much capital the banks need to put aside to cover their lending risk. The recent G20 meeting, in Toronto, has confirmed that these regulations will be tightened. This is to avoid the risk of a financial meltdown that was very nearly the outcome of the 2008 credit crunch. So the banks will have to set aside a much greater proportion of their funds as reserve capital, which will reduce the amount available for lending. Inevitably this will affect the availability and affordability of commercial loans.
If both banks and commercial brokers are unlikely to be forthcoming with commercial loans for your refinancing of loans, how are you to avoid the potential of repossession?
SellMyCommercialProperty could well be an ideal partner for you in this situation- we are a company with access to substantial lines of finance. We are looking to place those funds in the commercial property sector, and can access our funds directly, without recourse to credit markets. This means we can give you the equity from your premises fast, and at a fair market price.
Our experienced professionals operate country wide, and can make an initial assessment and valuation within 48 hours. This allows us to release the value of your commercial property much more quickly than if you were to attempt to source commercial loans from your finance broker. Give us a call today, and let us explain how SellMyCommercialProperty can take your refinancing woes, and turn them into them into a funding opportunity.
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