New business needs capital

Need: mortgage to purchase a commercial property
Challenge: no financial statements to show business history

To obtain financing for the purchase of a real estate property, most banks want to see that the company can make the monthly mortgage payments. The math formula used by lenders to determine how much to lend a company is based on a range of $1.10 to $1.25 of income for every $1.00 of debt. The bank wants to know that there is more than enough income available to ensure the mortgage payments are made. A two year (or more) average will be used by examining the financial statements of the business to get an idea of what the business can afford. New businesses who do not have the financial history need to present their transaction in a different way to the bank. Using a mortgage broker who understands the market and the requirement of the banks can help your business structure its transaction. A good broker will help you present your application to a bank to address all of their concerns – even if you are a new business. If you would like to speak with us about your deal, email or visit

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