A Commercial mortgage is a medium to long term loan which can be used to fund the purchase of business premises, extend a premises, to release capital from premises already owned, or to buy an existing business.
A commercial mortgage can also be used to purchase a commercial investment property i.e. a commercial property that will be rented or leased to another business.
Commercial mortgage finance is available on a wide range of properties such as:
A commercial mortgage can be approved to sole traders, partnerships, LLPs, and Limited Companies. A pension fund, in the form of a SIPP or a SSAS, can also borrow via a commercial mortgage.
When applying for a commercial mortgage the key point to remember is that the lender’s decision will be based your ability to meet the repayments. This will be assessed by reviewing the historic financial performance of the business (past Financial Statements/Accounts and latest Management Accounts) and financial projections (projected Profit and Loss, Cashflow and Balance Sheet).
To help the lender reach its decision you will typically need to complete a detailed Application Form, prepare a Business Plan and submit full financial details about the promoters, directors and shareholders.
Typical terms for a commercial mortgage would include:
If you are looking for a commercial mortgage, to ensure you get an offer which suits your requirements, get in touch with us to discuss the options available to you.
Rob delivered a series of 3 workshops aimed at understanding how finance houses look at finance propositions with the aim for us as a team to deliver more of a bespoke offering to our customer base. The training was delivered to a mixture of staff who work with new businesses start-ups and existing established businesses across Mid & South West Wales. Rob delivered the training with an abundance of passion and has really helped my team look at financial propositions in a different light, many thanks again Rob and I look forward to work with you in the near future.
I wanted to thank you for such an insightful, energetic, and entertaining talk at the Kevin Green Wealth event on securing funding and creating a successful plan. It was brilliantly executed and a pleasure to listen to and the ideas I’ve learned are definitely going to help me in going forward.
Hi Rob, it was so interesting and entertaining listening to you at the Kevin Green Wealth Coach Workshop in Reading this weekend! I didnt realise you can find Finance proposals such fun!. Brilliant tips! Thanks.
Rob kindly agreed to attend the recent Pontypridd RFC sponsors networking evening and delivered what can only be described as an excellent talk on 5 Tactics to Boost Your Business and Your Profits. He kept the audience engaged throughout and the feedback from everyone was excellent. Rob is very knowledgeable on business and finance and on top of that is a genuine nice guy. We hope to have him back at a future event and I have no hesitation in recommending Rob’s services.
Further to your recent presentation at LEAD Wales just wanted to say it was very refreshing to see somebody talk passionately and positively about finance, very insightful!