Bad Credit Commercial Mortgages
There are an awful lot of businesses that have got into financial difficulty in recent years for a variety of reasons. It could be that a major client who owes your business a substantial sum of money has gone into liquidation resulting in you having to write off the debt. This could put pressure on your cash flow and, in some cases, could lead to your business having to cease trading resulting in your business and yourself getting a poor credit record.
If you and/or your business do get a bad credit rating with the credit reference agencies then this is likely to make it harder to obtain finance in the future. Yes, you may well be able to arrange the likes of a bad credit commercial mortgage with a specialist lender but you will almost certainly be charged a higher rate of interest and may be asked to provide more security than you would normally be asked for. This is because by the very fact that you have got into financial difficulty in the past you are perceived to be a greater risk to a lender.
Obviously, the severity of your poor credit record may impact on your ability to obtain finance. For instance, if you are merely a month late in meeting a commercial mortgage repayment then that may not be perceived to be as bad as having defaulted on the commercial mortgage because you have not met the last 6 months repayments.
If you and/or your business have got an adverse credit rating and are looking for finance for your business then you may wish to shop around and look at the various providers of such lending. You can either spend the time doing this yourself or you may wish to get in touch with a specialist commercial mortgage broker who may be able to help you source a poor credit commercial mortgage.