Boost Your Business with a Commercial Mortgage
Long term commercial finance, in the form of a commercial mortgage, offers many small and
medium sized enterprises (SMEs) the ability to invest in their
business with new technology, new or refurbished premises, or
increased stock levels.In the past, it tended to be only larger organisations with a
proven track record who could obtain commercial mortgages. A
large number of younger/smaller businesses were unable to obtain
this type of commercial finance and, as a result, many
businesses have been forced to rely on expensive short term
finance or left to use their owners' residential property as
security.
Fortunately, this gap in the market is now being targeted by
specialist commercial lenders who are willing to serve the
commercial mortgage needs of SMEs and owner-managed businesses.
The problem
In the past, it has been difficult for small business borrowers,
self-employed traders, and partnerships to raise commercial
mortgage finance. This is because: - Institutional
lenders have focused on larger, corporate lending secured on the
tenant covenant of investment properties. This sector is seen as
being low risk and so has become a favourite of many traditional
lenders.
- The lending criteria of many mainstream
commercial lenders disqualify applicants who do not have three
years' audited account, those without business plans, or those
with a less than perfect credit history. As the UK workforce
migrates more towards self-employment, greater flexibility is
required from lenders to assess each case on its individual
merits. Until recently, this flexibility has been hard to find.
Similarly, in the past, the requirement for three years'
accounts has been a barrier to new or young businesses.
The solution
To address these problems, a number of commercial mortgage
lenders now offer commercial mortgages with some or all of the
following features: - Available to small owner managed
limited companies, partnerships, and self-employed
sole-traders
- Self-certification option - no need for
three years' accounts
- Finance available for any purpose
- no bank imposed restrictions
- Mortgage arrears, CCJs,
IVAs, discharged bankruptcy all considered
- Same day
indicative offers
- Completion in weeks, not months
- Transparent mortgage tracking Bank Base Rate
- Mortgage term of up to thirty years
- Advances from
£50,000 up to £1.5m
To find out more about how
commercial finance could help you, whether you have an existing
business or are just starting out, visit Online Commercial Mortgages.
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