Commercial loan mortgage refinancing options provide working capital for companies that need it
There are a number of companies that are getting their business lines of credit frozen by the banks and are turning to refinancing their commercial mortgage loan as an option to get a cash infusion into their business. Many of these companies that are refinancing their commercial mortgage loan are finding out that their real estate does not have the same value as it did when they purchased it, but they are still able to get some cash out of it. The guidelines for a commercial mortgage refinancing option are much stricter than the guidelines for refinancing a residential mortgage loan, but commercial loans are still doable.
Refinancing a commercial mortgage loan is done on a case by case basis and is usually done by local banks. This can make the commercial mortgage refinancing process a little more difficult than the residential mortgage refinancing process because it is not as cut and dry as the residential process. Many of these lenders will want to see a lot of documentation before they even give an idea of what they are able to do. This is what makes commercial mortgage refinancing a slow process.
Many companies in this economy are a healthy strong business that turn a profit every year. But the banks have seemed to not care how strong most businesses are and have frozen a large number of the lines of credit that have been extended to businesses. This has made it really hard for many business owners to stay open. Most healthy businesses use financing for working capital and if that financing is gone their business will struggle. However, the good news is, many of these companies are sitting on commercial real estate that they have owned for many years. So lots of businesses are looking at commercial mortgage refinancing as an option to give them the cash that they need to keep their business going. In many cases this has saved many businesses.
Then there are a handful of businesses that are also taking this money and using it to gain market share in their industry. With such a lack of capital it can be hard to expand in this economy for many businesses. Companies that are able to take advantage of the commercial mortgage refinance option and gain extra capital are able to buy out some of their competitors or even expand their current operations. Many companies are trying to take this route because with the economic recession many of their competitors have fallen off and now is a great time for them to put themselves in a good spot for the future.
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