| The idea of purchasing a commercial | | | | pub. They will want to know what the |
| property is that it is well suited to | | | | growth potential is and if the |
| the needs of your business. This can and | | | | commercial property will meet those |
| is defined by several factors and they | | | | needs. |
| will all be considered when you apply | | | | The commercial lender will not give you |
| for your mortgage. The commercial lender | | | | a commercial mortgage if the property is |
| will look at your business and what it | | | | too big or not big enough to meet the |
| does and how it will relate to the | | | | expected needs of the business. If the |
| commercial property in question. | | | | property does not have enough parking |
| If your company makes widgets, the | | | | for peak customer traffic, it will mean |
| lender will want to know how long you | | | | you could loose business. |
| have been making widgets. They will also | | | | The lender will want to know if there is |
| want to know what your growth rate has | | | | enough space for the number of employees |
| been over the time you have been making | | | | required and if the kitchen is large |
| widgets. They will look at the property | | | | enough to meet thier needs. What is the |
| to consider whether it will meet your | | | | maximum seating capacity of the building |
| needs for making widgets during the | | | | and how much will the average customer |
| lifetime of the loan. | | | | have to purchase to make the payments. |
| The lender will want to see that you | | | | There are many similar small things to |
| will have room to grow and that you will | | | | consider when deciding if the commercial |
| grow to fill the space. They will also | | | | property being looked at is a good deal |
| look at the location of the property to | | | | for both you and the lender. The list of |
| see how that is going to work with your | | | | things that can make or break a property |
| widget manufacturing needs. Do you have | | | | deal is very long and it does change |
| good access to roads that can handle the | | | | from business to business. |
| volume of traffic that will be | | | | For example for some businesses, it may |
| generated? | | | | come down to waste removal. If your |
| Will there be adequate parking available | | | | business is involved in agriculture, it |
| for staff and customers? Does the | | | | could come down to the smell. Is the |
| location provide room for expansion if | | | | location of your farm upwind or downwind |
| your growth rate is more then expected | | | | from a population center? |
| or will you be moving in a couple of | | | | If you are upwind from a population |
| years? What tax incentives are available | | | | center, there could be some issues as |
| on that property and how long will they | | | | locals oppose your being there. This |
| be available for that property? Are the | | | | could create a different kind of |
| tax incentives a one-time offer or are | | | | pressure on the lender that could make |
| they able to be extended to make the | | | | the property less desirable for the |
| property more appealing. | | | | commercial loan. An independent broker |
| The things that will make a commercial | | | | could help out with this type of issue. |
| property desirable will change depending | | | | It does not make any difference what |
| on what your business is. If you want to | | | | your business is, what will make all the |
| open a pub, your needs will be very | | | | difference is what your business needs |
| different from that of a factory. The | | | | are and will the commercial property |
| lender will want to know that the | | | | meet those needs. The definition of a |
| property is in a good location to | | | | good commercial property is one that |
| maximize the profitability of the pub. | | | | will meet all your current and long-term |
| The property could be located across the | | | | plans. |
| street from the factory we talked about | | | | If it does, it will make it easier to |
| in the previous example. | | | | get the commercial mortgage you are |
| The lender will again look at your past | | | | looking for. It will also help you to |
| performance in regard to operating pubs | | | | get better rates and conditions on your |
| to make sure that you know how to run a | | | | commercial financing. |