Showing posts with label new business. Show all posts
Showing posts with label new business. Show all posts

Tuesday, August 3, 2010

New business needs capital

Need: mortgage to purchase a commercial property
Challenge: no financial statements to show business history

To obtain financing for the purchase of a real estate property, most banks want to see that the company can make the monthly mortgage payments. The math formula used by lenders to determine how much to lend a company is based on a range of $1.10 to $1.25 of income for every $1.00 of debt. The bank wants to know that there is more than enough income available