Buy a Business - Funeral Home and Golf Course Business Loan

A commercial mortgage for buying a business involving a funeral home or golf course is usually a difficult business loan to arrange. Funeral home financing and golf course financing involve problems not found in most commercial loan situations. Refinancing for both of these business categories is likely to be more complicated than the original business financing for purchase.

Reduction in Commercial Lenders - Golf Course and Funeral Home Financing

There has been a significant reduction in local and regional banks offering business loan programs for funeral home financing and golf course financing. This of course compounds the already difficult commercial loan environment for funeral homes and golf courses due to fewer commercial lenders which are willing to provide reasonable commercial mortgage terms.

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.

Avoiding Problematic Commercial Mortgage Terms

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 Value and Commercial Real Estate Value for a Business Loan

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.

Exorbitant Commercial Loan Fees for Funeral Home and Golf Course Financing

There are business lenders that are taking advantage of the limited commercial mortgage loan choices for refinancing, purchasing and building golf courses or funeral homes. Business borrowers for funeral homes and golf courses should not be concerned by reasonable and legitimate business loan fees during the early business financing process. One of the unnecessary and unacceptable lending tactics involves excessive fees (generally more than $20,000) even if the commercial loan is not successfully completed.

Lender Choices - Golf Course Financing and Funeral Home Financing

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.

The practical reality is that a commercial borrower should be prepared for the limited choices of truly qualified lenders for a business loan to buy a business involving funeral homes or golf courses. It becomes essential to choose a lender with the capability to successfully complete the required commercial loan process and simultaneously avoid the business financing problems described above.

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