With competition from lenders heating up you'll find that many of them are dropping ERC clauses all together. If there is one present in your loan contract you may be able to negotiate it away with little effort. It's worth trying in any case and you can always apply somewhere else if your lender is not willing to negotiate.

In case of a variable interest rate commercial mortgage rate is based upon those issued by Bank of England. The lender will usually state that rate consists of published rate, which will likely vary up and down over life of loan, plus some pre-determined premium that remains same for life of loan. Be sure that you understand how frequently your rate will change and that you are comfortable with amount that lender is charging as a premium. As with any terms of your loan you can negotiate both of these factors.

A fixed rate commercial mortgage is a good choice when you feel that interest rates are headed up sharply and you want to lock in current rates. On other hand, if interest rates are in flux, and economic indicators point to a down trend, then a variable rate may be your best choice.

Keep this strategy in mind during lifetime of your commercial mortgage. If you are locked into a fixed rate, and interest rates have dropped significantly below what you are paying, you should consider applying for a remortgage and selecting a variable interest rate to take advantage of lower rates. On other hand, if you are in a variable, and all indicators are that interest rates will be skyrocketing soon, then look to move into a fixed rate so you can protect yourself against future increases.

Commercial Lifeline are Commercial Mortgage and Bridging Finance specialists.

The Three Questions 1. What do you have? Your opening paragraph should answer this question. For example: Our company manufactures pianos in Russia. Our last year's gross income was US$672,000 with a pretax profit of US$123,400. We own real estate upon which our plant is located. 2. What do you want? The second paragraph should tell investors what you are seeking. For example: Our company has opportunity to buy a competitor in Ukraine and to acquire an organ manufacturer and their manufacturing plant in St. Petersburg. The two acquisitions would increase our annual revenues by US$900,000 and St. Petersburg commercial real estate is valued at US$325,000. We need US$1 million dollars to complete both acquisitions. 3. What are you willing to give up to get what you want? This should be third paragraph. For example: The resulting company will have gross revenues of US$1,572,000 with an after tax profit of $311,000 and fixed assets (real estate) valued at $735,000. For US$1 million investment, we are willing to give investment group half equity in resulting manufacturing firm. This means investor is being offered about a 15% Return on Investment with a risk level of about 6%. In essence offer is a good investment for right investor.

Credibility To be taken seriously, your company must be credible. This is particularly true for startup companies. For example: Our management team has forty-five years combined experience in our industry works, if you prove it in your business plan. If you cite advanced degrees, include date they were received and university that issued degree. For example: saying that company's CEO has a PhD is meaningless. However, saying that CEO received his PhD in biophysics from Univ. of Michigan in 1989 is credible. Why? It's because investor can easily verify your claim. Don't make claims that can't be verified.

Avoid cashflow projections. They are never true and will impair your credibility. Only someone living in a cave or working in medical profession would rely upon them. Be specific and avoid general statements.

If you select your prospects carefully and follow these guidelines, you will have a far better chance to have your business plan read and your company funded.