This company real estate loan is as its title indicates specialized for firms and allows the financing of commercial or industrial buildings, ranging from CHF 500’000 to 10’000’000 or even 20’000’000.
Who is concerned by company real estate loans?
Managers or company directors with several businesses or holding companies frequently hold stakes in real estate companies. Indeed, generally, they own short- or medium-term assets and wish to obtain liquiditiesr anging from CHF 1’000’000 to 5’000’000 allowing them to face unplanned opportunities on the market such as the purchase of a new building, a company or simply to face unexpected events.
What are the procedures to get a real estate loan ?
There are two possible operations when taking out a company real estate loan.
First, it is possible to renegotiate an advance rate on the first rank mortgage (this varies depending on the termination terms and outstanding penalties) and the terms, which can lead to getting a better rate. It also allows to negotiate the contractual clauses in effect, or to reduce certain constraints (guarantee, global assignment of the debtors, release of the mortgage notes…).
Then, there is the possibility of obtaining an additional second rank credit representing a complement of liquidities. In this case, it is necessary either to increase the value of an existing mortgage note, which is a much more economical solution, or to create a new one. However, a mortgage note may not be sufficient. In this case, alternative solutions exist such as a pledge of the company’s shares, a pledge of insurance, a pledge of securities, a joint guarantee, etc.
What are the advantages of the different types of company real estate financing?
The advantage of choosing a first rank financing is characterized by the obtaining of larger amounts, thanks to the negotiation of rates and conditions (restrictive bank covenants). The second rank financing, on the other hand, allows for maximum liquidity, while guaranteeing security as well as flexible and variable amortization.
PrestaFlex has been of great assistance to its clients in terms of company real estate financing
Since 2013, PrestaFlex has regularly contributed to the financing of real estate companies, promoters and industrialists that own a lot of assets but are facing a liquidity shortage with an urgent need for cash. PrestaFlex has provided a tailor-made solution for each type of company. Our clients in Geneva, Vaud, Fribourg, Zürich and Zug particularly appreciated our ability to negotiate and find alternative financing solutions in a very short time.
More information under: Company real estate loan
Written by : Münür Aslan, CEO and Founder of PrestaFlex & Arij Kamel, Marketing trainee, Fribourg