A Mortgage Credit for a business involves a higher risk for financial institutions than if you applied for a home loan, therefore, you should consider that the requirements are somewhat stricter.
Why is there more risk?
Because with a common mortgage loan , such as a home loan , the normal risk is that you stop paying because you are out of a job or some other cause, causing the bank to go to the guarantor to pay what you owe.
On the other hand, a loan for a business is more risky, because you ask for it to open a branch or start an economic venture, which will give you the profits to pay that credit. The option for you to go wrong is always there, so the bank will tighten the requirements to make sure you meet payments.
Main requirements for a credit for a business
In general, it is almost impossible to get a loan without initial capital, but in the cases of starting a business, you will be asked for a greater contribution than if it were for a house. You will need at least 30% of the initial capital for the bank to start taking you into account. In addition, interest rates are also higher and repayment terms are generally shorter, between 10 and 15 years.
Apart from having 30% of the capital, you will have to have enough money to bear the expenses of taxes, studies and opening.
Other requirements are: up-to-date and in good condition personal documentation, verifiable financial history, income certificate, the last two balance sheets, the last two income statements and the last twelve VAT receipts.
Not all business credits are created equal. The bank will evaluate the location and type of business you will set up, to decide if it is viable or not. What you should do is go to your trusted bank and find out if there are any particular requirements to access credit. Seeks to comply with all conditions and be respectful of the process.
Remember that the best option to choose a Mortgage Credit is to simulate the offers available in the market. In Lenders Bank you can Simulate your Financing and make a smart purchase of your loan!