Being a professional financing company in Toronto, We Can Financial served a lot of clients who want to get small business loan with their mortgage products and also clarified the misconception behind it. Yes, this process has its own merits and demerits that we are going to discuss in this article. This text will not just explain different facts but will also assist clients to evaluate if they should get finance with mortgage products or not.
Normally, lenders prefer to provide loans to applicants who own commercial or residential properties because they are sure about the fact that the applicant is financially strong and can pay their amount on time. This works as a covenant in financing and therefore satisfies lenders about the re-payment of their loans.
If you are applying for a business loan, cash flow type loan, marketing loan or equipment loan, you can easily combine it with mortgage products, especially when it increases cash flow for the clients’ company. For instance, if the monthly occupancy expenses decrease by 30 percent after the purchase of commercial units and you also have a rental space that can be added to monthly cash flow- then incorporating small business loans application with mortgage product is the best example of financial synergy.
On the contrary, if the financial outcomes are not as expected, chances of application approval will be lower. So, it is necessary to consult with a finance expert, like We Can Financial, to determine the after effects of your decision. The decision also depends on lenders. Some provide unsecured business finance associated with commercial mortgage products while some financial institutions don’t.
There are even some clients who don’t have any idea that although commercial mortgage plans are rarely regulated according to the leverage and pricing, they can be able to avail increased real estate leverage benefits by term loan or operating line applications from the same institution. Yes this is true that we cannot work with overall loan to value (LTV) by collaborating with the bank to lend on mortgage, you will need to pay additional money from $50K to $100K as operating line that will be comparatively prices for all medium and small sized companies.
Now for almost every small business loan program available in Toronto, you have a limit of around $500K for both real estate purposes and business purposes. Our team of experts has the ability to maximize this limit up to millions of dollars considering that the company has strong financial health with satisfactory credit history. Also, we are expert in combining operation line and mortgage to increase the overall financing by 50K to 100K per million dollars of mortgage. We understand that this amount doesn’t seem to be sufficient for a company that is purchasing $1.5 million worthy commercial units, the extra 75K we financed generated 300K in terms of revenue during the initial year of business operations.
So, we welcome you to visit our office or call us at the provided phone number and email address in order for us to assist you with all types of small business loan application.
