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What is the procedure for getting finance for my new project

Posted on: 06th Jul, 2007 05:16 am
I am from India and planning to put a unit in Uk can you give me some idea abount how can I get finance to buy a place for production there. also I want to clear that it is called motgage or loan ?
Welcome Nimish,

If you are looking to finance your unit, you can go for a commercial mortgage as i guess it's a commercial property. And, yes it is called a mortgage loan that is offered against the property you are buying.
Posted on: 06th Jul, 2007 05:31 am
Hello Nimish,

Since you do not have a credit history in UK, then you can take a loan for building the unit. This way, when you regularly pay for the loans, then a credit history would be made. But, you would get a mortgage for a high interest loan.
Posted on: 06th Jul, 2007 05:53 am
"also I want to clear that it is called motgage or loan ?"

Mortgage is also a loan but it a type of loan for which the property is kept as collateral. Because of this it is different from other type of loans.
Posted on: 06th Jul, 2007 06:10 pm
Hi Nimish,

You can get the commercial mortgage to finance the purchase of land for business purpose. It provides the most flexible finance solution. UK commercial mortgage have a lower interest rates. With this sort of mortgage, as you repay the loan on time, the lender will not receive anything extra other than receiving the interest on the loan. Another benefit is that once you close the deal, your business becomes an asset that can grow under favourable market condition.
Posted on: 06th Jul, 2007 11:24 pm
Hi Nimish,

Jenkin7 earlier said - "Then you can take a loan for building the unit."
As you are not a resident of UK, so you do not have a credit history. So, to build a credit history, what you can do is that you can take a small loan that you can pay on a regular basis. The loan that you would take would have a high interest rate. There are certain companies that are overseas mortgage providers. And since you need a commercial loan, it is also important that you know about the lender and what the lender wants from you.

To now more about the commercial loans you may refer to http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074034001

Rosetta
Posted on: 07th Jul, 2007 03:01 am
Hello Nimish,

You can finance with a commercial mortgage as it provides loan up to 85% of property value and are generally of 10-30 years of term. This loan is available for borrowers with all types of credit history. With a commercial mortgage you are flexible to plan out your repayment scheme. But their interest rates are usually higher.
Posted on: 07th Jul, 2007 04:38 am
Hi Nimish,

Commercial mortgage is a specialized loan by which the lender can claim the property of the borrower until the loan has been fully paid. To qualify for such a loan the lender will expect you to be stable and profitable in your business. He will also consider your ability to make payments on the loan.
Posted on: 07th Jul, 2007 05:16 am
i am intrested in a commerical loan to get our company going strong big rig truck parts
Posted on: 30th Jan, 2008 07:36 am
phillip:
if your company owns the property it sits on, you can easily secure a conventional commercial product, a refinance of your current lien. if you simply need to borrow funds against your accounts receivable, i'd recommend your local bank.
Posted on: 30th Jan, 2008 10:51 pm
nimish3:
Congratulations on your plans! You can secure a commercial loan product through a commerical broker anywhere, as he/she will contact a UK source to fund your needs -- if they like your profile, you should be all set, as it sounds as though you are already conducting business in India with a need for a additional production facility in the UK.
Simply specify the size of the building needed and the location -- let the broker do some legwork, unless you have a commercial realtor in the UK able to find the site or lot -- I assume you do not intend to build, simply re-format an existing structure. Let me know if you'd like to us review your project.
Posted on: 30th Jan, 2008 11:01 pm
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