Commercial mortgage Toronto- know all about it

When you take a loan on commercial real estate and keep the property as collateral then this type of loan is called a commercial mortgage. The borrower here is a business or company as opposed to a person as well as business may be either a limited company, a partnership or incorporated. In this type of mortgage consequently assessing the credit history is quite tough. Also, the best mortgage rates Toronto of commercial mortgage are higher than the residential rates because of the increased risk.

best mortgage rates toronto

Types of properties for a commercial mortgage-

There are different properties which can be classified under the commercial property. It is necessary to determine which type of property you wish to finance. Residential real estate can also be financed as a commercial mortgage if it is bought as an investment property. This falls in given below category-

  • Pure residential, five or more unit
  • Pure residential, One or four-unit
  • Residential commercial mixed

So, before you go for best mortgage rates Toronto  find out whether your property falls under these type of commercial property or not.

Here are few tips to consider when buying commercial mortgage Toronto-

 toronto best mortgage rates

1-     Know the local market for the real state-

Before you decide on what to buy, it is necessary that you understand where to buy. All local market has its own tax rates, environmental issues as well as land inventory. Also, the supply of skilled workers in an area is to be considered.

2-    Consult an accountant-

One of the biggest issue in the commercial real estate at present is affordability, thus, before going to a bank, you should consult an accountant and determine your budget. You need to make sure that your budget incorporates all the hidden cost. In real estate transactions, the tax implications can be tough thus, it is necessary that you meet an accountant who knows about the in as well as outs of the commercial mortgage deals.

3-    Get the financing in order-

To get the best mortgage rates Toronto approved isn’t that easy. Banker’s wants high-quality financial statements as well as proofs that profits generated by you will be retained by your business. All these things play a huge role in finding out whether you will get the commercial mortgage which you want.

It will be a good idea to look for the best financing package. Not to forget that along with interest rate you need to consider other factors like what percentage of the purchase is financial institution willing to finance.

4-    Plan a layout well-

No matters you wish to renovate a new building, or existing one, the layout has a serious impact on operational efficiency. Thus, it is necessary that you hire the operational efficiency expert and they will advise you that how can you optimize your layout.

Keep in mind all the above tips and you will be able to get the best mortgage rates Toronto. Before you start finding commercial mortgage make sure you understand the qualification area for it and then buy it.

Benefits and Drawbacks of Buying Gold Coins for Investments

Have you ever tried to buy gold coins for investment? Today, the days are of online financial accounts and stock trading and therefore, money seems to be just a fantasy. Nowadays, money is not used as a tangible object as everything has become cashless. This is the reason why buying gold coins is something very solid and satisfying about investment. Some of the people might appear to be suspicious when they buy gold coins in today’s era but it is a little case of craziness. Therefore, you must check out the advantages and disadvantages of purchasing gold coins as an investment.

buy gold coins

Advantages of Purchasing Gold Coins

Other hard metals and gold have always been a valued part of traditional investment plans. Do you know why? See below.

  • Gold acts as a defensive wall against inflation.
  • Gold usually moves up when other investments fall which offers a stabilizing impact on your portfolio.
  • Until the moment you sell, you do not need to pay capital gains tax.
  • Gold or silver can be used for trade if you have the worst financial scenarios like massive currency devaluation.
  • Nobody wants to know that you have gold coins unlike the case of money.

Disadvantages of Purchasing Gold Coins

Like advantages, there are even some disadvantages to buy gold coins.

  • There is a chance of theft of your gold if you are not careful about it.
  • In contrast to stocks and bonds, a gold purchase cannot be considered as an investment for company growth. The fact is you would not get interest or dividends from tangible gold.
  • You might need to wait for the raise of gold value.

buy gold coins

Tips to Purchase and Keep Gold Coins Safe

If you have decided to buy gold coins, it is better to purchase it from a reputed financial institution or dealer. There is no smartness in buying gold coins from individuals which you are not sure of. Hence, it is recommended to first obtain the gold coins’ authenticity verified. US gold coins usually come in the denominations of one, one-half, one-quarter, and one-tenth ounce. When one buy gold coins, they have to pay a “premium” over the price per ounce from which the dealer makes a profit. You might even need to pay a higher premium if you purchase gold coins less than one ounce each. Generally, you should purchase bullion coins like the Canadian Gold Maple Leaf, South African Krugerrand, or American Gold Eagle.

Other Methods to Make Gold Coins Investment

Even you can purchase gold coins with your IRA (Individual Retirement Arrangement) either the fact that you cannot be able to take these coins to the home. Your gold coins will be kept in a safe locker for you by IRA administrator. Gold coins must essentially meet purity standards to certify as IRA investments. Without bringing any gold coins home, you can actually invest in gold. You can avail the benefits of gold’s hedge against inflation by buying gold certificates, gold mining stock, or exchange-traded products and without worrying about where to store them.

When and How to Make Use of Merchant Cash Advance Loans

Merchant cash advance loans are getting popular day by day and shattered all over the marketplace. This loan is all about selling the future revenues of the business to obtain money in advance. The cost of this financing tool is an important thing as the payback is 1.2 to 1.4 of the amount obtained over a small period which is 3 to 12 months. The lender needs direct access to the business bank account and/or credit card receipts. The lender can also be defined as the “Buyer” or “Buyer of Future Revenues”. They have the initial right to the receipts and collects of the business daily or weekly that leaves the entrepreneur with a lack of control over their cash flow. The sequence like underwriting, approval, and funding usually takes only 2 to 5 business days. Hence you can access the money easily and quickly.

merchant cash advance

Let us know more about the rate of merchant cash advance loans with a small example. If an entrepreneur sells $12,000 of future revenues for $10000 today and his payback is $12000 over three months, it is a 20% premium. Simple annualized interest will make this an interest rate of 80%. The amount of funding is $2000 on $10000 as it is paid back in three months.

Merchant cash advance loans are not actually designed as a loan because it is a purchase of future revenues which is why usury laws are not applicable. Moreover, this is a transaction of a business and it is not safeguarded by consumer law. When the risk of loss exceeds the cost of funding, this transaction is only beneficial to the business owner and they are 110% sure about the money for repayment.

merchant holding cash advance

Business owners must not utilize this funding tool to retire other debt, on the prospect of future expansion, or to buy an expensive piece of equipment. There exist various other financing tools which are more appropriate for those scenarios. There are many businesses who take out two to three MCA loans and share their views with other business owners so that they can make better financial decisions. On the internet, you can search out various financing solutions to meet your business needs. Experts are also available if you need any financial advice and options for your business. So must take the right decision for the financial need of your business.