Even cash buyers tend to use banks to enhance their returns by adding an element of gearing. By the very nature of commercial property, the capital values involved are generally much larger than for residential property.
The criteria for finance is a lot more complicated and requires a good solid application with a convincing proposal for why their bank should approve the finance required. It is very important for investors to know what questions to expect from their banker to not only save themselves valuable time but also to assist in providing the correct information so to properly assess the viability of the investment and ultimately result in a positive outcome.
To help investors prepare for the process in acquiring commercial property finance, they should consider the following: bankers generally look at the two important aspects of any application - the client and the deal. This is dealt with in the form of a client-centric and deal-centric approach - both of which are equally important.
The questions applicable to each approach are as follows:
Client-centric approach
Deal-centric approach