Would you like to switch to the accessible version of this site?

Go to accessible site Close modal window

Don't need the accessible version of this site?

Hide the accessibility button Close modal window
Accessibility View Close toolbar

443-275-7253

[email protected]

Open mobile navigation
  • Home
  • New Patient Center
    • Online Forms
    • What to Expect
    • Veterinary Resources
    • Payment Options
  • About Us
    • Services
    • Meet Our Team
      • Dr. Chapman
    • Website Membership
  • Memorials
    • Submit Your Pet Memorial
  • Petsimonials
  • Pet Mobile Care
  • Home >
  • Articles >
  • The Risks of Commercial Building Financing

The Risks of Commercial Building Financing

The risks of commercial building financing must be understood before any type of investment is made or a loan request for financing is granted. Every type of loan has certain risks, but the degree of risk involved in financing commercial buildings or investments is often greater because of the amount of property and money involved. The key to minimizing the risks involved with financing a commercial building is to arm yourself with knowledge so that you can be prepared for the ups and downs that will come with the financing of the commercial building.

The First Risk: Construction Risk

The construction can involve a simple remodeling or a new building, and can involve significant sums of money. The failure to follow a budget can be fatally detrimental to the financing of a project. The lender has to follow the project closely. Funds should only be advanced in stages and only  based on an evaluation on how the project is progressing and how closely the project is adhering to a planned budget. Always check the numbers involved and make sure the figures add up. Emotion should not be a deciding factor to finance, because remaining objective to see the reality behind the numbers is a critical skill.

Second Risk: The Risk to Capital

The second risk involved is that any type of commercial building requires capital. One point to remember is that when financing a commercial building, the lender is usually dealing with professionals who understand the expectations of a lender and have some resources to put towards the initial capital costs of the project. Proof of capital is an essential component before any deal can proceed to the next stage.  A related risk is that the capital used to finance the commercial building may be tied up for awhile, which means the ability to carry costs over a long period of time and having ample reserves to cover the ongoing expenses are critical because some commercial buildings may be difficult to sell.  Also keep in mind that buildings age over time and may become less valuable than the amount that was financed.

Third Risk: Market Risk

Market risk involves of the possibility of an economic downturn, which could mean that the commercial building financed may be producing little or no income for a while.  Having a capital reserve is critical if the project does not produce the expected results. A sensible and realistic business plan must be presented that can be backed up by hard data that justifies why the loan should be given. The potential profitability of any project must be fully analyzed before any loan should be made.

There are greater rewards involved in financing commercial buildings, but there are  greater risks too. Understanding those parameters can help mitigate the risks involved, and help the institution or person financing the loan prepare for as many situations possible.  Remaining objective, following sound financial principles, analyzing the business plans and overall project goals will help minimize the risks, although the risks will never entirely disappear.

  • Pet Health
    • Chronic Conditions
    • Digestive and Oral Health
    • Diseases and Viruses
    • Pests and Parasites
    • Orthopedics
  • Today's Veterinarian
  • Choosing Your Pet
    • Finding Your Pet
    • Cats
    • Dogs
    • Exotics
      • Amphibians
      • Birds
      • Reptiles
        • Lizards
        • Turtles
    • Small Mammals
      • Ferrets
      • Rabbits
      • Domesticated Animals
        • Prairie Dogs
      • Pocket Pets
        • Chinchillas
        • Guinea Pigs
        • Hamsters
        • Hedgehogs
        • Rats
    • Livestock
      • Cows
      • Donkeys, Horses & Mules
      • Goats
      • Pigs
      • Poultry
      • Sheep
  • Living With Your Pet
    • Bringing Your Pet Home
    • Children and Pets
    • Providing Care
    • Travel
    • Saying Goodbye
  • Newsletter Library
    • Tips for Pet Owners
    • Seasonal Topics
    • Nutrition & Food
    • Recognizing Illness
    • Visiting the Vet
    • Equine
    • Cats
    • Keeping Pets Healthy
    • Fleas & Parasites
    • Pet Dangers
    • Behavior & Training
    • Newsletter Archive
      • Fun with Pets
      • Unbelievable Pets
  • Video Newsroom
    • Health Topics
    • Technology and Science
    • Other Interests
  • Client Survey
  • Pets4Kids

Contact Us

  • Services

    We strive to provide complete care for our patients. Learn more about all the services we provide.
  • ONLINE FORMS

    Our patient forms are available online so they can be completed in the convenience of your own home or office.

Office Hours

Monday:

10:00 AM-6:30 PM

Tuesday:

11:00 AM-4:00 PM

Wednesday:

10:00 AM-6:30 PM

Thursday:

10:00 AM-6:30 pm

Friday:

Emergencies Only

Saturday:

11:00 am-2:00 pm

Sunday:

Closed

Our Location

Testimonials

  • ""It is nice to rely on his good medical judgment and his caring services.""
  • ""I highly recommend Dr. Bishop, especially if you are stressed out about a serious pet health problem. He is a very kind-hearted person.""
  • Why A Vet Is Your Best Defense During A Zombie Apocalypse

    Could your veterinarian help you survive a zombie apocalypse? ...

    Read More
  • What You Need to Know About Antibiotics

    Using antibiotics incorrectly may harm, rather than help, your pet. ...

    Read More
  • 8 Common Reasons Why Your Dog is Snoring

    Do you know why your dog snores? ...

    Read More
  • The Next Step

    The grieving process includes accepting the reality of your loss, accepting that the loss and accompanying feelings are painful, and adjusting to your new life that no longer includes your pet. How do I tell my family? Family members usually are already aware of a pet's problems. However, you should ...

    Read More
  • Feline Skin Allergy Symptoms and Care

    Has scratching become your cat's favorite activity? A skin allergy may be to blame. ...

    Read More
  • Battling Canine Cancer

    Every day, Cindy Fleischner lines up her crew of cuddly canines for breakfast. As the four other dogs eat, Cindy pulls Katy, her 12 year old Shepherd mix aside for a peanut butter treat. Katy is battling lymphoma and this treat hides her daily dose of chemotherapy drugs. Katy is not alone in this war. ...

    Read More
  • Cat-Safe House Plants

    Not sure which house plants are safe for your cat? Take a look at our list. ...

    Read More
  • Training Tips for Your Pets

    Has training your pet been a frustrating experience? These training tips may help. ...

    Read More
  • World Rabies Day

    Has your pet's rabies vaccine expired? Update it during World Rabies Day on September 28. ...

    Read More
  • Gastroenteritis in Pets

    Lengthy bouts of vomiting and diarrhea can be a sign that your pet has gastroenteritis, a common condition that occurs when the lining of the stomach and intestines becomes irritated. Since frequent diarrhea and vomiting can lead to dehydration, a visit to the veterinarian is a good idea if you notice ...

    Read More

Appointment Request

  • Copyright © 2022 MH Sub I, LLC dba iMatrix.
  • Admin Log In
  • Site Map