Moving Your Home Business Out of the Home? 4 Tips for Choosing the Right Commercial Mortgage

Your home business has turned out to be a lucrative venture. In fact, you need more space than your basement or spare room can provide. Now is the time to find a small commercial property and take your company to the business district. As you consider your options, choose the financing wisely. Put these tips to good use and your commercial mortgage by CloverMortgage will be just what you need.

Take a Good Look at Your Credit Scores

Assuming your business has been around long enough to establish a credit history, you can bet that lenders will want to look closely at what the current business credit score happens to be. Some may also want information about your personal credit score since you are the business owner. Before submitting an application, do check all of your scores. Doing so will ensure you can answer any questions that the lenders may ask after reviewing the credit reports.

Look in the Right Parts of Town

There are a number of factors that go into choosing the right commercial property. Location is one of them. Ideally, you want to focus on areas that are predicted to continue appreciating in value. That can be an older business district located near residential areas that are currently enjoying an upswing in value. As the property values in the area continue to improve, the commercial property that you buy now could be worth quite a bit more in a few years.

If you’re not sure where to look for an ideal property, take the time to review Canada’s housing market predictions and identify up and coming residential areas located near commercial areas. If the trend for an area is anticipated to last for several years, that’s where you want to invest in a commercial structure.

Consider How Much You Need to Borrow

Don’t expect lenders to cover the entire purchase price of the commercial property. Most will extend loans anywhere between 55% and 80% of the current market value. That means you will need your own cash for the deposit.

Keep in mind that they type of commercial property does make a difference. For example, you are likely to get a loan for a larger percentage of the purchase price if you’re buying an office building versus a farming establishment.

Pay Down Current Debt

Along with your credit scores, do expect lenders to be interested in the difference between what you owe and how much revenue the business takes in on a monthly basis. This is sometimes referred to in the banking industry as the debt service coverage ratio. Essentially, the lender wants to ensure there’s enough cash left over after you pay on current debts to make the mortgage payment.

If possible, pay off some of your current debts before applying. The positive comments left on your credit reports will help your cause. It also frees up more of your collected revenue and makes it easier to prove that you do have the resources to manage the mortgage payments efficiently.

Plan your next move carefully. Doing so will make it easier to finance the purchase of the commercial property and position your business for future growth.

Like What You See? Share the Story!

Cyber Security Risks

With every aspect of our lives migrating to the electronic world, it is hard not to think about your personal security. Not only is everything being done through new technology and equipment, data is being stored which leaves an opportunity for hackers to access information they typically wouldn’t be able to retrieve. Banking, health and client data is no longer physically kept in files. Are there ways you can lessen your risk of your identity being stolen? It seems that everywhere you turn there is a risk for this to happen. Your social security number, credit card, address, email or phone number can all be used to steal your identity and hack into your accounts.

Online Shopping

Online shopping is on the rise. People are no longer getting out and going to the mall, they rather purchase what they need from the comfort of their couch or desk. The problem with this, is that you are literally handing over your identity and all of your personal information to these vendors. Make sure when you are purchasing off the internet, you are buying from a reliable source and they are using secure means to process your transaction. Shopping overseas or from a lesser known vendor can heighten your risk for identity theft. The reason for this is that they don’t have the financial backing or power to make sure their systems are secure.

Credit Card Purchases

Using a credit card in general opens up your chances of getting hacked. You could simply go to a gas station or even an atm and swipe your card and be a victim of identity theft. There are machines that can be put into card swipers that read the numbers and information to allow hackers to have access to it. Be very aware when using cards at these sort of locations to avoid such an issue.

Storing Info

One big problem these days is that people like to store information on their computers. Passwords for different sites and login portals tend to be forgotten and need to be stashed away somewhere. People find it is easy to keep a file on their computer but that can often be hacked and then the hacker has access to all of your accounts all in one file. Try not to keep a file like this and find a more secretive way to keep this information. Maybe keep it in a notebook next to your desk or in a file. Either way, keeping it electronically on your computer or electronic device is a definite no no.

Hopefully by following these simple tips will make your chances of being hacked or identity stolen a little less. It is most important to be aware of what you are doing with all of your personal information when it comes to storing it electronically and online.

Like What You See? Share the Story!

Does Debt Relief Affect Your Credit Score?

Your credit score offers a real-time snapshot of your financial life, responsibilities, and wellbeing. The inner workings of the credit score can be tough to understand, though. In the U.S., three major credit reporting bureaus compile credit data and issue reports for consumers and lending agencies. These reports compile into what you may know as the FICO credit score.

If you’re pursuing debt relief, though, you might have another question. Will debt relief affect your credit score? Is it a good thing or a bad thing, as far as your FICO score is concerned? Here’s what you need to know.

The Range of Credit Scores

At its lowest, a FICO score can sit around 300. A perfect score, on the other hand, is 850. While those are the two extremes, there are many people in the U.S. with good scores that fall right around 620. Scores higher than 750, meanwhile, are regarded as excellent. If you’re not applying for credit, you might not think much about your credit score. When you go to apply for a car loan, credit card, or mortgage, though, it becomes essential. Lenders look at these credit scores to determine your reliability as a borrower.

How Debt Relief Impacts Credit Score

If you’re grappling with excessive debt and looking for a way out, you have a few different options. Each impacts the credit score in different ways. These are as follows:

  • Bankruptcy. Bankruptcy is a thorough debt relief tool, but a difficult one. Bankruptcy isn’t recommended for anyone but people in dire financial situations. If you declare bankruptcy, it will have a massive, negative impact on your credit score, which will remain for 7-10 years.
  • Debt Settlement. Debt settlement is an alternative to bankruptcy. It’s also a more often-recommended approach, as it has a mild impact on credit score. Whereas bankruptcy can cause a credit score to drop by hundreds of points, debt settlement results in about half the drop. This may make it easier for you to procure a mortgage or car loan again after your debt settlement process is over. Additionally, debt settlement takes about 2-4 years to wrap up, compared to as many as ten for bankruptcy.

Protecting Your Credit Score During Debt Relief

If you’re planning on pursuing debt relief, it’s essential that you also understand its impact on your credit score. While debt relief can be an essential step to getting back on your financial feet, it’s critical to remember that your credit score will follow you long after the debt relief is over.

With that in mind, be sure to research your debt relief options before you take any action. Talking to a debt relief specialist is also a great way to ensure you’re making smart choices and protecting your financial future.

Like What You See? Share the Story!