Types of Commercial Finance

Some lenders are very specific when it comes to the industry and geographical area they are willing to consider for commercial funding.

You may find that some lenders will only consider applications from restaurants and hospitality, whereas others may only offer commercial loans solely to nursing homes. Some commercial lenders may only deal with clients from certain areas, e.g., London or the North West; however, there are lenders that will consider all areas within the UK. A number of lenders will insist that the property be vacant, while others will only deal with owner-occupied premises.

Each lender will have their own criteria as to who and how much they will lend, so it is imperative that borrowers know which lenders to approach in order to be successful. For the average person, this can be complex and difficult to navigate, which is why it is beneficial to use a mortgage broker such as UK Property Finance Ltd., who will have access to commercial mortgages that will best suit your individual requirements.

Commercial Business Type Number of Lenders that DO accept business type as security Number of Lenders that DO NOT accept business type as security
Care Homes 4 46
Schools / Nurseries 4 46
Owner occupied 20 30
Hotels 22 28
Going Concerns 15 35
Public houses 18 32
Land 3 47
Mixed use 45 5
House of Multiple Occupancy 45 5
Investment 48 2
Residential Commercial 42 8
Commercial Usage of 20% 42 8
Live / Work Units 39 11
Farms 2 48
Equestrian Centres 3 47
Agricultural Ties 11 39
Industrial Units 32 18
Flying Freehold 34 16
Buy to Let 45 5
Chemical Works 1 49
Contaminated Properties 2 48
Religious Buildings 3 47
Buildings used by Charities 9 41
Petrol Stations 8 42
Charity homes 8 42

When considering applications, lenders will look at certain criteria, including the amount and type of security on offer, the financial accounts of the business, the borrower’s previous experience, and their credit score. When the lender is happy that the client meets all the above, they will make a formal offer.

The above list is not prescriptive, and as a whole, at Market Broker Service, we are in a great position to guide you through all the intricacies of your individual financial situation and assist you in getting the best possible deal for your commercial loan.

Owner Occupied or Investors

Here at UK Property Finance Ltd., we can provide a wide variety of commercial mortgages from an extensive panel of lenders. We offer commercial mortgage solutions for both owner-occupied and investors. We ensure to find the best possible deal, tailored specifically to your individual requirements. What we offer:

  • Short-term and long-term options
  • Repayment and interest-only loans are available.
  • Arrangement fees upon application or added at the end of the term
  • Fixed and variable interest rates
  • A higher LTV is offered for clients with additional security.
  • Additional borrowing and refinancing are available.

Although more difficult to secure than a residential loan, commercial finance can be used for a number of purposes, including, but not limited to, property purchases, business expansion, property development, debt consolidation, and cash flow issues.