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 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.
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.
Our experienced team of advisers works closely with you to understand your specific business lending requirements and can put together a plethora of options to assist you.
Contact us now to discuss your commercial and business financing needs.
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Prism Financial Services is a trading style of Prism Global Services Ltd - FCA reference number is 937225, an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority, registered in England and Wales no. 09832887, registered address: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH.
Prism Global Services Ltd trading as Prism Financial Services is registered in England and Wales no. 12331294
Some forms of Buy to Let Mortgages are not regulated by the Financial Conduct Authority
Conveyancing, Wills, Estate Planning and Commercial Mortgages are not regulated by the Financial Conduct Authority.
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK
A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.