Are you purchasing or constructing a new commercial building such as a warehouse, office block, retail shop or industrial building? If ‘yes’, then you need commercial development finance. Before you make an application for this type of loan, you have to put certain things into consideration. They include the following:
1. Your Ability to Make the Repayments
When all is said and done, you should never take out a loan you cannot repay. Take into consideration your current income and the expected rental returns to be sure if you will be able to meet your loan repayment obligations. If you can’t repay it, don’t take it.
2. The Interest Rates Charged
Financing for development can either be cheap or expensive, depending on how much the lender charges in terms of interest. The higher the interest rate provided, the higher the monthly instalments will be. Always go for a loan with an affordable interest rate if you want it to be affordable.
3. The Repayment Period
Repayment periods will vary from one lender to another. Usually, the longer the repayment period, the more you will pay in terms of fees and interest. However, when spread over a long period of time, the instalments tend to be more affordable.
Don’t just rush to secure development finance. Put these things into consideration and you will never go wrong.