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Commercial Leases

A commercial lease is a rental agreement between commercial property owners or managers and their tenants. A commercial properties, as the name suggests, are properties leased or owned for business use rather than residential use. They may include office properties, industrial properties such as warehouses or factories, research facilities, or retail properties such as shopping centers or malls. They do not include houses, condominiums, or apartment complexes.

Commercial lease range in length from several months to several years. When tenants sign a lease, they are indebted to pay the property owner or manager a certain amount of rent income each month during the term of the lease.

Commercial leases have been recognized as an assignable cash flow only recently; therefore, funding for commercial lease payments is a growing industry. Several of the funding sources that are already set up for factoring and mortgage purchasing are now beginning to fund commercial leases. Consequently real estate investors with income-producing commercial properties are now able to solve their cash flow needs by selling payments on the secondary market instead of borrowing from a bank. Selling commercial lease payments is an attractive alternative to traditional financing because it is less cumbersome and expensive, and provides more flexible solutions to short-term cash flow problems.

Murcor Funding represents several investors that will purchase your future commercial lease payments for immediate cash. Contact Murcor Funding today to find out how we can help you.

 

The Benefits of Selling Future Lease Payments

Selling your future lease payments offers many of the same benefits as factoring invoices. It allows property owners to immediately generate cash which can be used to:

  • Make improvements and renovations on the property.

  • Build an addition to the property.

  • Invest in another piece of commercial property.

  • Cover many other needs without incurring debt from additional loans .

More importantly, selling future lease payments generates cash without the hassles or restrictions of bank financing. Property owners that do not qualify for bank financing (because they lack available or have credit lines tied up) may qualify for lease funding. In addition, they can sell lease payments without incurring debt or pledging the property as collateral. The amount of funding available to them is limited only by the amount of their lease payments and the funding source's parameters.

Even property owners that do qualify for financing from a bank may be able to save money by selling off future lease payments instead. Suppose, for example, a property owner needs $15,000 to replacee the carpeting in a $3 million building. If the owner gets a bank loan by refinancing the mortgage, he or she could be required to pay closing costs as high as $15,000 in addition to interest on the loan. When the owner sells lease payments, he or she does not have to pay closing costs.

Contact Murcor Funding today to find out if selling future lease payments is the right option to solve your cash flow concerns.

 

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