Most people, especially “first time buyers”, tend to think only in terms of approaching their own banks when it comes to arranging finance. There are, however, other sources. There are Commercial mortgage Lenders, Asset Finance Lenders, Lenders that specialise in factoring/invoice discounting, lenders that can provide finance based on existing pensions, refinancing of existing commercial finance and much, much more. Also consider a personal loan or mortgage.
What Security Do You Have For The Loan
For large commercial loans, commercial finance lenders usually require land and buildings as security for the loan. In the current economic climate it is very difficult to get finance for more than 70% of the value of the loan – although in a very limited number of cases – not impossible! If you are looking for more than 70% – be prepared to look for other alternatives. For smaller loans, vehicles, plant, equipment etc. may be acceptable. Some lenders even allow you to refinance equipment that you already own (say a car) thereby enabling you to release capital into your business.