Commercial mortgages and personal loans are completely different beasts. For those venturing into commercial mortgages for the first time it may all appear a little scattered and unordered if their only point of reference in the past has been personal loans. Rates charged for commercial mortgages, business loans and other business facilities are not pre-determined like personal loans often are.

Each commercial mortgage application is usually handled as a unique case and on it’s own merits. The lending manager or responsible director of the commercial mortgage lender will look at each application for a commercial mortgage carefully and assess the risk level of the application according to the merits of the commercial property, the borrowing entity and potentially its directors and any other security offered or required.

A great deal of information is required in order to reach a decision on whether to extend the desired loan. The interest rate offered on any given commercial mortgage will vary depending upon the risk factors of the application for the commercial mortgage loan. Larger loans with a low risk will always attract better rates than smaller and/or more riskier loans. What determines a risky loan will vary from one commercial mortgage lender to another. Each lender will usually have a risk profile that they use to determine the risk factor and will work with this as a guideline as they process your commercial mortgage application. Applications that fall outside a commercial mortgage lender’s risk profile will be refused.

About the Author: Dominic Lambrinos

Dominic Lambrinos is a financial expert who provides professional business finance solutions, commercial financial engineering, expert review of financial submissions, negotiation, equity raising, business sales, and trade financing. Dominic is also a sought after finance business trainer, and accomplished public speaker.

Under Dominic’s guidance , his team can also prepare professional financial submissions, review financial statements, provide financial accounting, business administration, development of information systems, marketing and sales skills, computer and Internet sales skills.