Category Archives: Commercial Mortgage

Bridging Loans

Bridging Loans

Fast bridging finance. Are you a home mover caught in the gap between selling one home and buying another? It can be a tricky situation but we can introduce you to brokers to arrange a bridging loan as a cost-effective way to tide you over.

Your options include:

• An Open Bridging loan that helps you to buy a home before completing on your sale

• A Closed Bridging loan that helps if you’ve exchanged contracts on both homes, but there’s a delay in moving

Bridging finance can be arranged for a maximum of 75% LTV if you are a house mover and have a new mortgage need.

Interest rates vary from lender to lender but generally they can start from as low as 0.75% per month depending on your needs and circumstances. So if you are looking to arrange a bridging loan for mortgaging your present and future home or if you are looking for commercial fast bridging loans.

Fast bridging loans are generally secured on a property or other assets of high value – meaning that the value of your asset is used to guarantee your loan. Payments are interest only, so your monthly repayments are lower as you are not paying back any of the bridging loan principal.

As bridging loans are short-term loans, the interest rate will tend to be higher than that of, say, a mortgage, making bridging loans unsuitable for long term financing, but highly useful and profitable for when you need funds fast.

How long does a bridging loan take?
You should expect the entire process to take 5 to 10 days – i.e from your first application to the money being paid over to you. It could be done quicker but it depends on how fast you want to move and if there aren’t any significant hiccups.

• Fast bridging loans requirements.
• Completion possible within 5 days.
• Fast efficient professional service.
• Funds available for any purpose.

Commercial and Residential Property Purchase
Short term bridging loans provide assistance in cases of a temporary cash shortfall or in a crisis, during the purchase of property, land and/or business. This normally occurs when a buying chain is broken or where the purchaser needs to complete before the sale. Bridging loans can be provided for:-

• Renovations
• New Build
• Refurbishment
• Commercial Property Purchase
• Land Purchase
• Speculative Properties
• Conversions

Property Developer and looking for fast bridging loans?

Fast bridging loans can be used effectively for the property speculator to buy that property in an auction, once the property has been improved, sell and repay the bridging loan from the sale proceeds.

• Loans from 30,000 to 3million pounds
• Loans are interest only
• Secured on freehold property
• Interest rates vary from 0.75% to 3% per month
• No fees before completion and/or draw down of the loan

Adverse Credit History Loans
As bridging loans are secured on property, they can be effectively used to raise capital for any purpose, regardless of your credit history. We can assist with a IVA, BANKRUPTS, CCJS, ARREARS, DEFAULTS, MISSED MORTGAGE PAYMENTS.

Tips for getting your Commercial Mortgage Approved

Commercial Mortgages

Commercial mortgages

Like any other loan, applying for a commercial mortgage for your business is something most new business owners will have to do.

And, like any other loan, getting a yes is the hardest part to opening up your business. If you are weary about applying, first and foremost remember: banks need to give out loans, in order to stay in business. Apart from this, these are a few other tips to keep in mind, in order to get the yes answer you are looking for.

Be prepared –
If you walk in to the bank and ask for a £100,000 loan, but do not show them how you plan on using it, you might as well forego the application process. When applying make sure you have everything squared away. Have prospective earnings portfolios prepared, show the bank comparatives (in regards to similar businesses in your industry), show cash flow statements, showing all costs, things like taxes, insurance etc , and a repayment plan.

The more research you have done about your business, the more you have to show them (in terms of ability to repay), and the more prepared you are, the higher the likelihood of being approved.

Anticipate questions –

You are going to hear dozens of questions thrown at you, including:

  •   How will you spend the money?
  •   How much do you expect to earn the first five years of business?
  •   How will you compete with established businesses?

These are a few of the many questions that are likely to be posed during the application process. This goes back to being prepared. If you have researched, if you know what competitors earn, if you are aware of potential losses the first year in business, and so forth, you are going to be able to answer any of these questions. Anticipating the tough questions will make the loan process easier, and will increase your chances at an approval as well.

Dress the part –
If you want to showcase yourself as a prominent new business owner, you can’t walk in the bank in a pair of jeans and a baseball cap. Dress the part, and show the lender you are serious about the loan process. Not only does this give them more confidence in you, it will also make you feel more confident when you walk in to speak to a mortgage lender. Its a business transaction, so treat it like one.

Never be negative –
Most businesses fail the first year; in fact, they tend to lose money before any profits are ever made. Present yourself as an entrepreneur, and someone who can repay the loan. Show the loan officer promo materials you have developed, an online site, and other things you have done to sell your business, before you open your doors. These ads and press releases not only show you know you will succeed, but have put money in to the business, and have a plan to repay the loan.

If you anticipate the worst, it will happen. Have a positive attitude, even if you aren’t 100% sure where things will go. Not only are you more likely to be approved, but you are also more likely to receive better terms on the loan as well.

Business Funding

Business Funding


Every business needs money at one time or another. The process of obtaining financing can be daunting and the chances of success limited if it is approached in a disorganized or haphazard way. Lenders are conservative critters; however it is important to understand that it is their job to lend money, and they are happy to do so if their risk is reasonable. The chances of obtaining a business loan are greatly enhanced if you adhere to the following procedure.


Understand how you intend to use business financing, how much funding you need and how you intend to repay the loan. Be able to communicate this clearly and confidently with prospective lenders.


If you are an existing business, are you profitable, and does your balance sheet have positive equity? What does your credit look like? Have a clear understanding of any existing liens and lien priority. Know your credit score and answers to derogatory credit issues (liens, judgments, slow pays, collection actions) before presenting your application. If there have been credit, profitability or equity issues in the past, present a credible argument as to why these issues have been resolved or how this loan will change this situation.


All lending is critiqued from a risk standpoint. Certain levels of risk will qualify for certain types of financing. The level of risk is reflected in the cost of the financing. The more secure a lender’s money is, the less it costs you. Get creative. Financing takes many forms, and is available from a wide range of sources.

Business Finance

Standard (conventional) bank financing usually offers the best interest rates, however it is the most difficult to qualify for. These loans appear as a long-term liability on the business balance sheet. Conventional loans are available through banks and other lending institutions and can be guaranteed in whole or part by the SBA.

Revolving Lines of Credit are another form of business financing. This type of loan is secured by accounts receivable or inventory and is available from a bank or an Asset Based Lender. Credit cards are a form of revolving line of credit. An Asset-Based Line of Credit (ABL) is considered alternative financing and is available to borrowers who are too highly leveraged for a bank.

Real Property, Equipment Leases and Notes are another form of business financing. In these contracts the collateral for the loan is the property or equipment itself. When there is no outstanding balance owed on the asset, the property or equipment could be used in a Sale-Leaseback transaction. Here, the asset is sold to the lender for cash, and the borrower leases the property from the lender until the loan is paid.

Landlords can be a source of financing. It is not uncommon for a landlord to contribute dollars or rent concessions to the development of a tenant’s space. For this loan, the landlord may require a Percentage of Gross Sales Clause in the lease as repayment. Extended vendor terms for purchase of product may provide short-term operating capital loans.

In the event that additional credit strength is required, loan guarantors or borrowing someone’s credit may help the borrower qualify for less expensive financing. Be flexible. Your final package may be comprised of several lending solutions


Lenders need to know who you are personally, professionally and financially. The lender needs to evaluate Income Tax returns (Corporate and Personal), financial statements (income statement and balance sheet) and a cash flow projection. The balance sheet has to look a specific way. The Current Ratio should be at least 1:1, and the Debt to Equity Ratio should be at least 4:1.

Be specific as to how the money is going to be used and how it will be paid back. Lenders want to know what is securing their debt. Lenders evaluate the quality of the collateral, and want to insure that it is adequate to secure the debt in case of default. A secondary source of repayment is required prior to granting standard financing. The personal guarantee of the borrower is often required. In some situations, a lender may seek secondary collateral. Secondary collateral is simply some other asset in which you have equity or ownership, i.e. equipment, property, inventory, notes.

Business funding is not difficult if the borrower is creative and realistic. Know how much money you need and how you are going to use it. Be prepared to defend your needs and anticipate the lender’s questions. In the event that a lender cannot grant your request, perhaps it is the way a loan is packaged. Find a lender who is willing to make recommendations that will help you find financing. A good lender will tell you quickly if they can help you or not. If an intelligent and organized package is presented, a timely response is warranted.

About the Author

Written by Monte Zwang of Steele Development Corporation, a consulting firm specializing in business development and financial strategies. You can reach Steele Development  online at

Buying Property Abroad – Portugal

Buying property in Portugal

Portugal has long been a popular choice for people buying property abroad, particularly from the colder climates of Northern Europe, looking to purchase a holiday home or a retirement home.

Traditionally they have done so using offshore companies, mainly to avoid estate taxes. Unfortunately Portugal, along with some other countries, has made this route considerably less attractive by the imposition of swingeing tax penalties on offshore companies. The magnitude of these penalties can be seen from the examples below,

Real Estate Transfer Tax

This tax is paid by the purchaser, at progressive rates of up to 6% (5% for rural property) on property used exclusively for residential purposes, on the higher of the registered value or the purchase price agreed between the parties. This is usually the purchase price.

For offshore companies this rate has been increased to 15%.

Municipal Property Tax

This is a tax, at a rate set annually, levied by the local authority and based on the registered value. The rates are different for urban and rural properties and the total is typically about 1.6%.

For offshore companies the rate has been increased to 5%

Tax on a Deemed Rental Income

Where a property is owned by an offshore company, it is treated as having produced a rental income, which is charged to income tax, of one-fifteenth of the registered value.

There are other taxes, which have to be taken into account and these are,

Income tax

Where a property is rented out, the rent is charged to income tax and on a sale 50% of the chargeable capital gain is subject to Portuguese income tax.

Stamp duty

There is a stamp duty of 0.8% on the transfer of real estate.

Donations tax

Gifts to a spouse, antecedent or descendant are tax- free but other donations attract a tax of 10%

A Solution

Fortunately there are territories, which are not on the Portuguese black list and by purchasing a property in Portugal through a properly structured corporate vehicle incorporated in one of these locations, it is possible to avoid the penalties on offshore companies. These arrangements may bring with them other benefits such as,

•The ability to sell the property in the future without the buyer having to pay Real Estate Transfer tax,
•Avoidance of Portuguese capital gains tax on re-sale,
•Avoidance of donations tax or inheritance tax
•Avoidance of the deemed benefit provisions in U.K. law.

As taxes and the manner in which they are applied change frequently specialist advice should always be taken before entering into any arrangements.

Way of getting Business Finance

business finance

Business Finance and how to get it!

The whole issue of business finance is one of the hottest topics that business owners and entrepreneurs alike face every day. Once this group of prominent persons throws a credit crunch or recession into the picture, the discussion takes unprecedented turn.

The truth is that when you come up with a business idea, the next step would be to find ways and means of sourcing finance in order to fund it. Well, you would be surprised at the number of options that are available to get your business off the ground. Without further ado, let’s have a look at some of these alternatives.


Do you have some money in your bank account? With rates of interest hitting an all time low, it’s not doing any good to you when it lays idle in the bank. Perhaps some people have made you redundant, and you have money burning a hole in your pocket. All the same, the best thing about using your savings to finance your start-up business is that you need not borrow some money from someone. In addition, you have an added advantage since you won’t be forced to start out in debt, or having to part with substantial part of equity at an early stage.

Family and friends

If you are determined to getting some business finance for your start up business, you can always count on your family or friends to provide you with all the financial support. The truth is that when you enter into a negotiation with your nearest and dearest, you are likely to get the most favorable terms. This is because they will, in many occasions; love to lend you a hand for a slice of the pie, once you are successful, rather than a donation or a straight loan.

Bank loans

Another source of business finance is through bank loans. Oftentimes, these loans are required once the business has had a proper foundation. This means that the now incorporated business may require a bank loan to meet its recurring obligations that include the daily operating capital, as well as its plans for long-term growth. All the same, in order for the business to secure this loan, the bank may request some financial information for both the entrepreneur and the business. In addition, they are likely to request collateral in order to secure and guarantee this loan.

Angel investors

Once the business has shown some growth and has shown signs of steady revenue, some angel investors may be called upon just in case the business requires more funding. This group of affluent individuals, who pool together their resources and research, provides funds for any start up business, but only in exchange for ownership or a convertible debt. Before these angel investors decide to finance your business, they will first conduct some due diligence to determine if your business meets all the requirements that form the basis of loan financing.

That said, sourcing for business finance may seem a little bit difficult, but if you develop a business plan that will prove to an investor the value that he will get by investing in your business, you will increase your chances of securing any finance you need, regardless of the stage of the business.