Today, a business man has a greater choice of making use of commercial loans. He could either start a pub, restaurant, construct a building for apartment purpose, show room, shopping mall, petroleum station, pharmacy etc. You must be aware that your commercial mortgages are not the same as simple mortgages which you use for home purpose. These are a little different in its nature. They are variable ones with its interest rate floating on par with the BOE's (Bank of England) base rate.

Pub mortgage may be borrowed from banks or other brewery owners. Put to use these easy funds to spruce up your old pubs. Bring about modifications and make it a happening place for all. Remember, that pubs are being used to sign up contracts as well. Learn the LTV (Loan to value) ratio, which is usually 60%. That is you can borrow 60% of the market value of your collateral. Higher the loan to value ratio greater is the risk involved. However, if you have a sound business proposal or plan to make you may win more loan to value. You will be able to borrow more on your equity. A sound plan is also helpful to win over lower rates on your funds borrowed.

If you were turned down on finances for your new commercial set up such as a hotel or a hostel, don't worry. Bad credit finance lenders will assist you and remove you from the debt maze. Win a better chance by drafting out a practical business plan projecting your income and outgoings. How do you plan to pay the rest of the loan amount each month?

Source by Vijay K Shetty