Commercial loan includes loans on acquiring businesses, operations or business properties. Borrower could be the business owner and those who invest in business properties for investments or business operation. It may also be applied on office clerks who use the loan to invest. Business loan is similar to home loans, but they vary in loan-to-value ratio, interest rates and income levels.
Commercial property loan
Commercial property loan is the same as home loans. It concerns about debtor’s credit, mortgage, loan documents, loan valuation, loan contract and loan management. However, commercial property loan is related to business operation, making it more complicated. Professional assistance is required. Mortgage property could be factory/warehouse, retail shops, commercial buildings, unit building (with more than 4 units), and kindergarten. Once the loan institute is interested with the loan proposal, you may apply.
Pros of commercial loans
Reasonable Tax Avoidance: Commercial loans can be an effective way to avoid tax reasonably. Interests expense from commercial loans can be counted as operation expense. Depreciation of property and car for commercial use can be tax deductible.
Risk sharing: Banks are willing to lend you money for doing business or business expansion. You may see this as a risk sharing from banks. Commercial loans vary from person to person as it depends on your own situation. We suggest you consult professional mortgage companies for a detailed loan proposal before borrowing money from the bank.
Application conditions for commercial loans
Permanent Residents, business visa holder and some Temporary Residents are eligible to apply. For more details, please contact our professional brokers for a further explanation.