Obtaining home equity loans for companies and SMEs can be impossible if any of the profitability and operational performance indicators do not convince your bank. Not to mention the case of the company appearing in RAI, a fact that automatically means that any request for financing does not go beyond the draft.
How to obtain equipment financing for your company?
Banks spare no effort in studying the financial situation of a company before opening a line of credit. There are several pieces of information that they will check and that will require the company to know its financial situation. As a general rule, banks that study the viability of mortgage loans for companies.
Home equity loans for companies and SMEs
However, there are currently several options beyond banking to obtain financing through loans with a mortgage guarantee for companies, that is, with a mortgage guarantee. Private lenders cover that part of the market that demands financing and that traditional banks and credit institutions leave unattended through home equity loans. In Loans for your business you will find your best ally to obtain mortgage loans for companies or SMEs quickly, comfortably and with all the facilities in terms of payments and repayment.
Business Home Equity Loan Requirements
In Loans for your business we have a wide portfolio of private banks willing to grant loans with mortgage guarantee for companies and SMEs, if they have real estate in their name or even in the name of a third party such as an administrator or a partner Of the same.
Specifically, the conditions that you must meet so that we can study your application for a mortgage loan for your company are the following:
- The company or its administrators, have in their name a real estate property free of charges or with little mortgage.
- The maximum amount that can be awarded will be 60% of the property’s value.
- Mortgages for companies and SMEs
- If you meet the 2 previous requirements, we can start studying your mortgage application for your company. However, we like to make things clear in advance, so below we will summarize the general conditions of our mortgages for companies so that you know what product you are going to hire.
- Interest on mortgages for companies will be between 9 and 12%. The exact interest rate will depend on your ability to pay and other variables – such as the time it will take to return the money and the type of amortization that you prefer to use to repay your loan. Note: the general rule in any loan (mortgage or not and whatever the entity that grants it), is that the longer you take to return the money, the more interest you will pay.
- You can choose the recurrence of mortgage payments that best suits your company. Monthly, quarterly or semi-annual fees, we leave it to your choice. Semiannual payments are useful if you are a company with a high temporality (for example you work in the tourism sector) since it will be very convenient for you to avoid cash outflows when the company is closed or with its activity level at a minimum.
Types of amortization of mortgages for companies and SMEs.
You can choose to repay your SME home equity loan through joint principal plus interest payments or interest-only payment and a final principal payment. The most common form of loan repayment in the world is the French type, which contains interest and principal in the same payment. However, on specific occasions, returning all the money at once at the end of the loan’s life (the so-called American amortization) can be very interesting for companies and SMEs, for example in the case of being pending to receive a high sum for late payments of providers or administrations.
Advantages of the two types of amortization of the mortgage. The advantage of French amortization is that it allows long-term financial planning because payments are always for the same amount throughout the life of the loan. The advantage of the American amortization is that it does not compromise finances in the short term because the amount to be paid is less until the last installment arrives and the loan must be repaid.
Mortgages are signed before a notary public. To open a home equity loan financing line for your company or SME, it must be formalized at a notary for the security of both parties. The notary chosen by the company requesting the loan will be the one who will draft and shape the conditions and agreements reached, with total transparency.
In Loans for your business we act as intermediaries between companies and SMEs that need a mortgage and cannot obtain it through the bank and private banks (one or more) that make their money available to these companies.
We have a team of specialized agents both in the financial and investment sectors and in the real estate sector to study the feasibility of mortgage loans for companies. Our goal is that the company can return the money without losing the guarantee and that the lender recovers his investment, so we will never sign operations that are risky for either party.
Documentation to process mortgages for companies
Although the above factors are positive, to obtain mortgages for companies and SMEs, the bank will study the financial situation of the company internally before giving the OK to a financing line. In 90% of cases, it will also ask your company for the following.
- Last three account statements
- Complete credit application
- Driver’s license
- Void check from business account
- Specify if the collateral is a house or commercial building
- Date of purchase
- Purchase value when made
- Mortgage if you own
- Owner’s name
- Estimated current property value
Quick mortgage loans for your business
As you can suppose, the study of all the above factors by the bank can mean several weeks before receiving a response. If, in addition, any of the variables does not provide the entity with sufficient confidence, the loan application will be denied.
In Loans for your business we do not take into account so many variables to grant quick mortgage loans for companies, therefore you will have an answer for your SME in less than a week. If your company has a real estate property in its name, we can start studying your application for a home equity loan immediately.