Commercial Bridging Loans and Mortgages For Acquisition Finance

Acquisition finance is one of the most serious aspects of business financing. When one company needs to acquire another for strategic purposes, it always has to face the big question of financing. Venture capitalists may be an option, but it usually takes a lot of time to woo them. Due to the economic turmoil of the recent past, they are being extremely cautious, and it’s usually not easy to convince them for acquisition finance. Entrepreneurs all over the world are grappling with the problem of financing for even general purposes.Commercial bridging loansCommercial bridging loans are one of the best options for meeting your short term financing needs. Generally, these can be taken for 3 years, and can be obtained easily. All you need to do is show them some relevant assets and reasonably progressive balance sheets. These loans can take care of all your short term finances. You could invest in adding new capacity, machinery and technologies to your business and stay ahead of competition. You could also take a commercial loan on a mortgage. Commercial mortgages had become unpopular in the past, but with real estate looking up, you will get a very good deal on your loan. It will help you reduce the interest rates, and provide as a sweetener.Cash flow financeWorking capital and cash flow finance is yet another important area for all businessmen. While running a business, you would need a lot of money to be able to sustain your needs for new equipment, maintenance and repairs and employee’s salaries to keep the production levels up. This is especially true if you have a B2B model. It will take some time before you cash in on your accounts receivable. For companies manufacturing steel, oil and so on, the average receivable periods are very high. This is because most of their clients also manufacture goods that are generally slow moving, and take some more levels to reach the final customer who will pay in cash. But since businesses cannot stall their production levels waiting for finance, commercial loans are their best bets. You can easily get this type of financing. It is faster than approaching Venture capitalists, and it is definitely faster than raising equity.A word of caution would be prudent here. Before you approach a mortgage broker, ensure that he is a certified broker, and an established one. Have your papers pulled up by a qualified lawyer, and carefully go over the terms and conditions. You could go for self certification mortgages too, which are mostly based on your monthly income. In this case, the broker will examine your company’s annual income and then give you a deal.

This entry was posted in Uncategorized and tagged , , , , , , , , , . Bookmark the permalink.