Investment loan for real estate purchases also for companies

Probably every entrepreneur asks himself a question about the future of the company, its further development or directions of its progress. This is a natural process – we want the brand we created to be our hallmark, bring profits and provide us with a peaceful, prosperous life. Many business owners also want the legacy of hard work to be passed on to future generations. All this, however, must be based on funds for this development – funds that we are not always able to obtain from current operations. Regardless of whether it is about introducing technical innovations, acquiring new employees and training them, buying new machines or expanding the headquarters or production space – all well thought-out, ambitious business decisions in the long run will bring us increased profits and increase our competitiveness. But what if we can’t afford the extra expenses without jeopardizing the company? Then, with the help of an investment loan for companies for the purchase of real estate , we are able to implement even the most far-reaching plans.

Financing investments in the company – purchase of real estate on credit

Financing investments in the company - purchase of real estate on credit

The financial services market offers us a whole range of solutions, of which credit is of course the most popular. Today we are looking at an investment loan for the purchase of real estate , which allows companies to become independent on premises, change their headquarters to a more prestigious or logistically available one, or simply enlarge it or open a new office. “Investments” is a very broad concept – they can include the purchase of machines, software or licenses, employment or training of employees, as well as the purchase of real estate for the needs of a company. The said investments can be financed with the help of a loan, and in the case of the purchase of premises, buildings or land we will deal with an investment loan for the purchase of real estate .

Banks offer products targeted at entrepreneurs, but, contrary to marketing, colorful advertising and slogans, obtaining such financing is not at all the easiest. Why? Well, in most cases it is necessary to document our income – and it is quite scrupulous. There are also industries and branches of the economy that banks consider to be more or less risky, making their decisions dependent on a multi-component risk assessment of granting such a loan. In some cases, entrepreneurs have to accept a refusal, in others – higher costs of financing, such as an increase in interest rate or fees for starting a loan, as well as the need to provide additional security. As the name suggests, an investment loan for companies for the purchase of real estate involves investing – in this case, investing by a bank, which must check very carefully whether it pays off at all and what risk it entails to enter such an investment.

How do you get an investment loan to buy real estate? What will the bank require?

How do you get an investment loan to buy real estate? What will the bank require?

Institutions granting loans for the purchase of buildings, premises, offices, production halls, warehouses or land, very carefully check the entities applying for them. The loan application is quite complicated, and it should be accompanied by a number of documents confirming our creditworthiness , describing the activities of our company and explaining why such an investment is necessary for our company.

A bank – or a non-bank branch, a parabank or a loan company, which we should also take into account when applying for an investment loan for the purchase of real estate – in which we will apply for this type of loan, will primarily check the financial condition of the company (assessing the condition of our business), balance sheet and other documents related most often to the specifics of our business. We must be ready to provide various accounting forms, letters and certificates confirming our income. It is also very important to justify the need to invest in real estate and to prove its keyity for the development of our business. In some cases, a business plan may also be required, in which we will determine how the purchase of real estate will contribute to the development of our company. The preparation of such a document should be entrusted to a specialist in the subject, and his remuneration – usually from several hundred to a thousand zlotys – should be treated as an investment in our business. Thanks to him, our chances of getting a dream investment loan for the purchase of real estate . However, this is not the end of important restrictions related to this type of loan product – which is very important, and what business owners forget about granting financing after the grant is the fact that the institution lending us the money has the right to check whether we spent it as intended. If it has been otherwise, we may face penalties, which are standard in the loan agreement.

Types of investment loan collateral for real estate purchases

Types of investment loan collateral for real estate purchases

As you can guess, a very important element in obtaining financing, which is the investment loan for companies for the purchase of real estate , are the ways of securing it. For a bank or other institution granting such a loan, its collateral may be:

  • entry to a real estate mortgage – that is, submitting to the bank employee a statement on establishing a mortgage, on the basis of which the bank draws up its own statement. It contains real estate data (location, area, purpose etc.) and loan repayment date,
  • a blank promissory note – a security containing the obligations of an issuer of a promissory note or of a person whom he has authorized to refund money to a bank within a specified time and place,
  • blocking a bank account – i.e. granting a power of attorney to the bank to collect a certain amount to secure a loan,
  • assignment of receivables – otherwise known as a transfer, is a contract resulting in a change of the person authorized to demand the performance of an obligation. It consists in the transfer of claims by contract to a designated person or specific entity.

So, as you can see, the investment loan for the purchase of real estate is a good proposition for those entrepreneurs who care about the development of companies and who are not able to finance it with current revenues.

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