Commercial Financing for Special Purpose Business Qualities


Funeral homes, aided living facilities, campgrounds along with other special purpose qualities represent probably the most difficult commercial loan situations which is faced by an entrepreneur. Unique qualities aren’t easily understood by traditional lenders, so the most typical solution involves locating a non-traditional loan provider for funeral home financing in addition to commercial financing for other special purpose qualities. Such non-traditional lenders is going to be suitable for purchase situations in addition to refinancing and new construction.


(1) Obviously special purpose qualities aren’t much like other commercial qualities. This will make most financiers uncomfortable because of the likely impossibility of finding another owner for any unique commercial property if it is necessary as a result of loan default.

(2) For funeral homes and lots of other special purpose commercial qualities, the majority of the business value is symbolized by non-property assets. With traditional commercial lenders that concentrate on real estate loans, it’s almost unattainable financing in line with the property value and also the business value. For instance, it’s not uncommon to possess a situation where the property for any funeral house is worth under a million dollars as the overall business value is more than three million dollars.

(3) Because commercial financing is really hard to request special purpose qualities for example funeral homes, aided living facilities and campgrounds, sellers of these qualities are usually prepared to provide substantial seller financing to help the customer in obtaining the company. However, many traditional lenders don’t recognize or accept seller financing as a way of reducing lower payment needs for special purpose qualities.

(4) Most financiers simply don’t realize the company complexities connected having a special purpose property. Consequently, it’s not uncommon of these lenders to connect burdensome and costly needs for example strategic business plans and ecological reviews. Generally such lenders don’t even need to make the company loan and can use undesirable loan needs as a way of appearing to approve financing while in realization they have disapproved the borrowed funds with the addition of commercial loans that they don’t expect an industrial customer to simply accept.


For any business customer facing the problem described above, the greatest priority ought to be to choose a non-traditional commercial loan provider that partcipates in the next commercial loan practices:

(1) Freely welcomes special purpose qualities and routinely finances such qualities.

(2) Provides commercial financing for the business and property.

(3) Accepts substantial seller financing.

(4) Doesn’t add special needs towards the business loan for special purpose commercial qualities.

(5) Has past making loans for that specific kind of property into consideration.

(6) Can hold both big and small commercial loans for special purpose commercial qualities (for instance, loans no more than $100,000 and loans the size of $5 million or greater).

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