Like snowflakes, every business is unique. From equipment to staff, from physical space and business hours, no two companies are completely alike. In this way, commercial financing products need to be tailored to fit. Whether you’re just starting your business or reaching the next stage of your growth, it is important that you have financial options that will help you get where you need to be.
Key Differences from Residential Mortgages
Most people are much more familiar with residential mortgages and loans. Commercial financing for your business is based on a different set of criteria than your home. For example, residential mortgages are based on an individual’s debt-to-income ratio and other indicators of their financial standing. Commercial loans will take into account the income of the business itself. In order to calculate this, lenders will consider the debt-service coverage ratio.
To be eligible for commercial financing, lenders will require a variety of documents. Some of this will be personal information, like your driver’s license and social security number. The majority, however, will be business details. Expect to be asked for a business plan and financial records. These will ensure lenders that the financing will be handled responsibly by the borrower. In the case of a commercial mortgage, the building will need to have an appraisal done. After all of this, a property survey will be required.
Get Started Today!
While commercial financing can be stressful, it doesn’t have to be. Here at Source Mortgage we will guide you through each step of the process, ensuring that you understand exactly what is going on throughout your entire financing journey. The decision to finance through us means you have the benefit of accessing the best products available in Alberta. We have the ability to find the most ideal rates and conditions to suit your unique business.