Businesses
may have had past credit problems for example
with failed mortgage payments, defaults, loan
arrears,
missed repayments and county court judgments.
Previously this would have been very difficult
to place with any commercial lender. Now however
there are a few new lenders who have taken a
radical, more open minded approach. Usually
the degree of adverse credit will determine
the loan to value of the mortgage given, this
is to reduce the exposure of risk to the lender.
This
might be used to re-mortgage even if the business
or company owner has had a bad credit problem
or missed some repayments. Remortgaging maybe
used to raise capital for new equipment, perhaps
a business premises relocation or a cash injection
to enable growth and expansion. Generally the
lender will only lend on the value of the bricks
and mortar as opposed to goodwill or extra open
market business value.
Adverse
commercial finance maybe be for a buy to let
property, semi commercial mortgage, development,
land and refurbishments which can be either
unregulated by the Financial
Services Authority
or regulated. It is now possible also to potentially
obtain business finance for self-certification
or self cert type mortgages, this can be very
useful as a business may potentially remortgage
with minimum paperwork which will speed up the
lending process which is often hampered by large
quantities of paperwork and potentially may
not reflect a company's true value or worth.
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