Buy a Business Financing for Golf Course and Funeral Home Loans

A business loan to buy a business involving either golf courses or funeral homes is among the most difficult commercial mortgage scenarios. Golf course financing and funeral home financing involve special complexities not found in typical business financing situations. In both cases refinancing is usually even more difficult than the commercial loan to purchase.

:Reduction in Commercial Lenders - Golf Course Financing and Funeral Home Financing

As a further complication for a difficult business loan for a golf course or funeral home, less business lenders are willing to offer competitive business financing terms. There has recently been a noticeable shrinkage in regional and local banks which offer commercial mortgage programs for golf course loans and funeral home loans.

Golf Course Loans and Funeral Home Loans - Commercial Mortgage Terms to Avoid

It is critical to avoid undesirable business loan terms when refinancing or buying a funeral home or golf course business. Particularly important terms involve the percentage of value for the commercial mortgage and the length of the commercial loan. Regional and local banks will frequently offer short-term business financing instead of a longer-term commercial loan.

Business Opportunity Financing

A commercial loan variation in which commercial property is not purchased involves a business loan to buy a business opportunity. The commercial property in this situation is commonly leased instead of purchased. Like business financing to buy a funeral home or golf course, it is usually difficult to obtain dependable commercial financing to buy a business opportunity.

Stated Income Business Loan Problems

The use of a stated income business loan is not recommended for a golf course loan or a funeral home loan. One key limitation is the low percentage of value for stated income business financing involving funeral home financing and golf course financing. Another critical limitation of a stated income commercial loan is the maximum commercial mortgage loan that will be approved.

When Commercial Real Estate Loan Value is Less Than Business Value

For golf course loans and funeral home loans, the commercial real estate loan value is often less than the business value. This is particularly true with a funeral home appraisal. The problem with this disparity is that many business lenders will provide a business loan that includes only the commercial mortgage loan value, and this will produce significantly reduced business financing.

Excessive Commercial Mortgage Fees for Golf Course Financing and Funeral Home Financing

Commercial borrowers should expect some legitimate and reasonable commercial mortgage fees during the initial commercial loan process. There are several commercial lenders that continue to take advantage of the severe lack of business loan choices for purchasing, building and refinancing a golf course or funeral home. One of the particularly unacceptable tactics is to charge exorbitant fees ($25,000 is not unusual) whether or not the business financing is successfully completed.

Commercial Lender Options for Funeral Home Loans and Golf Course Loans

As already noted, the availability of suitable lenders for this specialized type of business loan is shrinking. A viable commercial mortgage for funeral home financing or golf course financing will depend upon a prudent choice involving the lender.

It is critical to select a lender with the ability to successfully complete the complex business loan process and at the same time avoid the commercial mortgage obstacles described earlier. A borrower seeking to buy a business should be prepared in advance for the limited number of acceptable business financing lenders for golf course financing and funeral home financing.