An all-time aid to your business

The foundation stone of a building is the most important of all, as on its strength, depends the existence of the entire mansion. To get a flowering, fruit laden tree, a healthy seedling is inevitable. If you feel lost to find such statements in a finance page, then have patience and read on.

The initial finance of a business decides its future growth. Every aspiring businessman puts his first step forward with an initial amount that he manages with the help of commercial loans. The commercial loan is availed with an intention to kick-start a new business or to develop, revive and expand his already established foothold. At such decisive times, the commercial loans provide the first necessary thrust. There are cases where people avail the aid of these loans for the purchase of products (raw materials) and services (man power) to pull out the business from a downfall. Once the business gets revived with the incoming profits, it can easily pay back the borrowed amount. This simply means that these loans ease us out at the time of intense hardships and save the business from meeting its doom.

I was always a bit reluctant to go for any kind of loans as borrowing always builds up an excruciating tension in my mind. Those sleepless nights spent worrying about the repayment of the loan still give me goosebumps. But I have to admit that at a turning point of my life when my business was at the verge of a collapse, financial loan was the only saviour.

To avail a commercial loan, certain things are to be bore in mind. You can borrow anything between £50,000 to £50,000,000. Up to 79% of LTP or Loan to Valuation are offered by the commercial lenders, but that purely depends upon your credit history and personal standing. You can get a secured commercial loan or a commercial mortgage for 12 months to 25 years.

You need to have a detailed analysis and view of your future business plans as to what will reap you benefits enough to repay the loan amount. You will have to keep handy your audited personal financial statement for the last 3 years. If you are borrowing money for your already established business then you will be asked to produce the financial statements of your business, balance sheets, profit/loss statements, equity in business, details about the owners, partners, stockholders etc.

As it is advisable in the case of personal loans, to go through an in-depth analysis of the market trends and choose a financial lender who has exactly what you need. Focus on how to put the money in the best possible way so that it yields the maximum profit.