Commercial Finance from 7%

Commercial Finance is split into two distinct groups:

  • Semi-commercial properties: Refers to properties that combine both commercial and residential, most often retail premises with residential property above.
  • Full commercial properties: Refers to properties that are solely dedicated to business and have no residential aspect. The categories for this include offices, factories, warehouses, schools, land, hotels, bed & and breakfast, sports clubs, restaurants, nursing homes, and many more.

Commercial finance lenders will typically agree to lend funds based on the viability of the borrower being able to comfortably meet their monthly repayment obligations as set out in the agreement.

This means that the lender will carefully consider the following situations:

  • Owner occupied premises: When the borrower wishes to use the property for their own business, the lender will carefully scrutinise the business accounts to ensure that they can realistically afford the monthly commercial loan repayments.
  • Investment premises: When the borrower intends to use the property for investment purposes, the future rental potential is taken into account, as it will typically be used to cover the monthly repayment obligations. The comments from the surveyor valuing the property will be highly important to the lender’s decision on whether a commercial loan will be approved or not.

Note: It is important to note that commercial finance differs from bridging finance in that funds can sometimes be raised using both the value of the property and the success of the business combined.