Commercial lending interchangeably also referred to as Business loan, are pivotal to the business sector as primary source of funds which fuels the business needs, meets working capital requirements and keeps the business engine running.

Business have varied set of financial requirements depending on the objective and time-line for the set purpose to be met, some of the popular lending options used by business small and medium alike are Bridging finance, Unsecured business loan, Asset finance, Secured loan, Invoice factoring and discounting as well as Commercial Mortgage/Buy to Let, we would be able to support you and your business with all these and much more.

Commercial Mortgages:

Commercial Mortgages are primarily borrowings from lenders to finance purchase of non-residential properties. The type of commercial properties which can be purchased are shops, offices and business premises.

Commercial mortgages are offered by most, if not all high street lenders and there are specialist lenders with deals available. The loan to value offered on commercial mortgages is lower than residential mortgages, which means the borrower has to put a higher amount of deposit. One thing to note is the interest rates on such loans are also higher, when compared to residential mortgages.

Bridging Loans:

A Bridging loan as the name suggests, is a short-term lending facility that helps borrowers with immediate and short-term liquidity requirements. This could be when you are buying a new property before completing the sale of an existing property or purchasing an auction property. Bridging loans are of two types namely Closed Bridging loans and Open Bridging loans.

Closed Bridging loan is where there is a fixed repayment date set, while in Open Bridging loans while there is no fixed set repayment date but your borrower is expected to repay the said loan within a 12 month period.

Since Bridging loans are short term finance alternatives, the interest rates are higher than residential or commercial mortgages and the loan to value offered by lenders would usually not exceed 75% of the cost of the property. As part of the loan application process, the lender would require an assessment an exit strategy showcasing how the repayment would be made.

Commercial Mortgages are not regulated by the FCA.

Get in touch with us so we can assist you with your Commercial Lending, Bridging and Buy to Let requirements.