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Business Loan to Buy a Business - Golf Courses and Funeral Homes

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.

Fewer Business Lenders - Funeral Home and Golf Course 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.

Business Financing to Buy a Business Opportunity

Much like a business loan to buy a golf course or funeral home that includes commercial property, workable business opportunity financing is difficult to arrange. A commercial loan to buy a business opportunity is a special variation of business financing in which commercial property is not included in the purchase price. The commercial property needed will usually be leased on a long-term basis.

Business Loan Terms to Avoid - Funeral Home and Golf Course Loans

Some regional and local banks will probably offer short-term business financing instead of a long-term business loan for golf course financing and funeral home financing. Another key term that can vary significantly is the percentage of value for the business financing. When buying or refinancing a funeral home or golf course business, it is of critical importance to avoid undesirable commercial loan terms, especially commercial mortgage conditions involving length of loan and percentage of value.

Difficulties with Stated Income Commercial Mortgage Financing

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.

Business Loan Difficulties - Commercial Mortgage Loan Value and 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 and Funeral Home Financing

Business owners should be prepared for reasonable business financing fees during the beginning of the business loan process for golf course financing and funeral home financing. There are a number of business lenders that have chosen to take advantage of the shortage of commercial loan choices for building, purchasing and refinancing a funeral home or golf course. A common tactic is to charge excessive fees of $25,000 and more even if the commercial financing is not finished.

Funeral Home Financing and Golf Course Financing - Avoid Problem Lenders

As mentioned earlier, the supply of acceptable business lenders for this kind of business financing has been reduced. An agreeable commercial mortgage for a golf course loan or a funeral home loan will depend upon a wise lender choice.

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.

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