Golf Course Financing

Usually ranked among the most problematic commercial finance situations for business borrowers is specialized commercial real estate. Substantial challenges for commercial refinancing and acquisitions are typical for golf course loans. Because fewer lenders are currently offering competitive business finance terms, this is a further obstacle for an already difficult golf course business loan environment. There are fewer regional and local banks offering golf course financing compared to a few months ago. Unfortunately this difficulty can also be seen with other specialized property financing including funeral home loans. Business owners should be ready for the possibility that the small number of active regional and local banks will probably offer short term financing instead of long term financing for golf course loans. The maximum percentage of value for business financing is a key finance term that can differ from one lender to another. Particularly with business loan terms for length of loan and percentage of value, it is critical for borrowers to avoid unrealistic commercial mortgage terms for golf course refinancing or acquisition. There are some serious potential problems found with golf course mortgage loans that are not usually apparent in other commercial mortgages. When golf course financing primarily entails business loan refinancing, business owners should expect that it will probably be more complex than acquisition business financing, especially in the current lending environment. The commercial property loan valuation is usually much less than the overall business valuation for a golf course business loan. The potential for significantly reduced business financing will often occur because of this disparity which causes many lenders to provide a business loan that includes only the commercial mortgage loan value. During the early stages of the business loan process for golf course financing, there should be some reasonable commercial financing fees. There are a number of business lenders that have chosen to take advantage of the shortage of commercial loan choices for building, purchasing and refinancing a golf course. Commercial borrowers should be aware that charging excessive early fees of $25,000 and higher is a common tactic. Availability of acceptable lenders has shrunk for this specialized commercial loan category. Prudent choice of a lender will be a prime factor in securing a viable golf course mortgage. It is important to select a lender with the ability to avoid the commercial mortgage obstacles described and successfully complete the complex business loan process. The use of a business loan expert should be helpful to anticipate potential problems with complex business financing. Since golf course business loans are among the more difficult business finance transactions that a commercial borrower is likely to encounter, the use of preliminary business consulting should be helpful in obtaining better terms and avoiding serious problems. Steve Bush provides golf course business loans and business financing help at
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