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    3 Replies Latest reply on Jun 9, 2017 7:18 PM by thedavid

    There is a sudden crisis

    scott001 Newbie

      Hi,

      I run a textile shop and have 2 branches at different locations in Canada. My business is doing really well and my shops are very well known here.

      I have plans to open a new store. I have been arranging funds for it. The new shop is under construction and I want to open it soon.

      Since there will be 3 shops now, I will need a large warehouse to store the stock. I purchase the dress from different places. They arrive at the warehouse. We sort everything from there and distribute to the different stores. So now I will have to purchase another warehouse because the present one is small and the space is insufficient And now since there will be more stock coming in, more space will be required.

       

      But there is an issue at the moment. There is a sudden financial crisis. The expenses are going beyond my expectation. So I will have to arrange funds from another source. I cannot leave this in the middle. I have to do something and complete it. So, my friend told me that the best solution for my current situation would be to take up an industrial mortgage.

       

      However, I have never taken a mortgage till now and so I really have no much idea about it. What paperwork will I need to acquire this type of mortgage? Is it too risky? And what about the interest rates? I am looking forward to getting some suggestions on this. Thank you.

        • Re: There is a sudden crisis
          moderator_lee Tracker

          Hi Scott,

           

          That does sound like a predicament, your reservations are understandable. Have you got an accountant or have you been doing all of the bookkeeping yourself? Having an expert in finances on your team can make all the difference.

           

          -Lee

          • Re: There is a sudden crisis
            thedavid Adventurer

            Hello scott001,

             

            The paperwork required to qualify for an industrial mortgage is similar to home mortgages.The difference is the banks require a profit and loss statement, or 1099 forms from the business, a list of your current debts/assets, bank statements, copies of your previous business returns, etc. The interest rates on these loans vary by how long you will be paying on the loan (10,15 or 30 years).

            1 of 1 people found this helpful
            • Re: There is a sudden crisis
              moderator_lisa Pioneer

              Hi Scott. It's been a month since you posted about this. I hope you've received the help you needed to keep your business running. Please consider posting an update if you have time.

               

              --Lisa