Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
Related Categories
Tip of the Day

Tip of the Day Don't Be Afraid of Stock

Don't Be Afraid of Stock - Today, two-thirds or more of 401(k) money is invested into low-yielding bonds, because bonds are a much safer investment with lower risk than stocks,...

read entire tip

Recently Added
Other Great Sites
 

Commercial Finance Leasing

Today numerous businesses depend on the commercial mortgages as they help in buying commercial properties. It is very common nowadays for businesses to take financing as well as backing for their inventory, upgrades, operations, expansion and also for multitude of different reasons. Commercial financing is now available for all these types of reasons. Apart from the short-term commercial loans which are often used, there are numerous other long-term and medium options for commercial financing.

The commercial financing for medium-term loans generally have a loan duration of anywhere between 1 to 5 years. Commercial lenders as well as bankers have a great concern regarding medium-term commercial finance and hence will require higher collateral for the risk that is added. Equipment, upgrades and expansion are basically the main reasons for commercial loans.

1. Equipment Leasing: At a time a business could lease their equipments for about 2-5 years. Renting always allows reduced monthly payments as compared to term loan which is used to buy the required equipment.

2. Commercial Term Loan: These kinds of business loans could be probably utilized only at the discretion of the business. The term duration in a commercial term loan is often of 5 years and the repayment is required to be done through quarterly payment of interest as well as principal.

3. Business loan with monthly payment: This is similar to a business term loan. But the only requirement is that the payments need to be done monthly.

As these loans have a term of 5 years or more, these kind of long-term commercial finance is one of the difficult one’s to get. Some of the banks look for well-established organizations having strong collateral. Some of the examples of a long-term commercial finance are:

1. Commercial Mortgages: These mortgages have a variety in the rates, amounts as well as repayment terms. Some also have a term of up to 25 years.

2. Real Estate Finance: Companies which have a good financial stand as well as equity could always borrow against the real estate assets they have.

3. Personal Loans: Small business holders could take advantage of these personal loans as a kind of commercial finance.

4. Asset-based loan: Loans taken against company’s assets are known as asset-based loans.

5. Leveraged Buyout: A leveraged buyout will occur when an investor or corporation will purchase a huge share of the company’s equity.

6. Association Loans for small business: These kind of association loans are basically designed for the small businesses and also have specific requirements to be met, moreover are simple to get eligible for.

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Dot-Com

Dot-Com - This is a term that is related to any business that does most of its activity on the internet. And the maintain a web site domain where the address in with a “dot” and then com. It is very common these days for any company to create a...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com