Need money for a shop or office space? Or maybe storage space is needed to store inventory? Many freelancers and SMEs rent a property, but more and more often entrepreneurs are buying business premises again. A mortgage loan is available for this. A mortgage is therefore not only available to private individuals, but also to entrepreneurs. What is necessary to apply for such a credit and how does the process work?
What is a mortgage loan?
In most cases, entrepreneurs cannot buy commercial premises from their own resources. A mortgage loan is then a solution. A mortgage loan is understood to mean a loan of 50,000 dollars to 250,000 dollars, the purpose of which is to finance commercial real estate. A mortgage loan usually runs between 1 and 20 years.
Every month, the borrowing party repays part of the loan, including interest. You can choose from a linear and annuity repayment. The lender often works with a business advisor who can provide appropriate advice on the credit. Extra repayments can be fine-free in many cases, but under certain conditions. It is a good idea to read the terms and conditions carefully before applying for a mortgage loan.
Repayment of mortgage credit
Mortgage loans sometimes resemble revolving loans. Here too, money may be withdrawn from the loan if the borrowing party so wishes. The entrepreneur only pays interest on the amount that it actually withdraws. With a mortgage loan, the borrowing party is not obliged to repay monthly, but it is allowed.
What has to be paid monthly is the interest. How this works exactly depends on the form of the mortgage loan. Read the exact conditions when taking out the credit.
The application process
Before taking out a mortgage loan, it is wise to compare different providers. View not only the costs, but also the conditions against which you can borrow. The application can be started using an online form. The form asks for personal and company information. In any case, submit a complete business plan, including a financial plan and a specification of the private budget.
Does the plan look good? Then the provider calls to schedule an appointment with a business advisor. It may be that the advisor visits home or on the case. With some lenders it is also possible to get acquainted online, through a video call. The business advisor and applicant discuss the business plan and credit application.
If the application is approved, the lender sends a proposal with all the agreements in it. By mutual agreement, the lending party receives a final agreement. After the agreement has been (digitally) signed, the credit is deposited into the account and the entrepreneur can start immediately.