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