If you’re looking to grow your business, or are fed up with the costs of renting your business premises this is the page for you.
Commercial Finance is a term that covers many different types of finance. It includes the purchase of commercial property which includes offices, industrial units, retail, healthcare etc.
It can also be borrowing against the rental income of residential property such as HMO’s rather than its bricks and mortar value.
POINTS TO CONSIDER WHEN COMPARING COMMERCIAL FINANCE
- Manual underwriting;
- Experience essential to get better rates;
- Process can be slower;
- More detailed information required;
- Rent to interest cover higher than traditional BTL;
- All types of tenants considered;
- Term of loan can be shorter;
- Repayment mortgages are the most common.
- Commercial Finance available on an interest only, full repayment or part interest and part repayment basis;
- Loan terms vary from 3 – 30 years;
- Available to individuals, partnerships, LLPs, trusts and limited companies;
- Minimum property valuation £100,000;
- LTV up to 75%, but typically 70%.