Invoicing
discounting Business
Loan Buy To
Let Buy
To Let Subprime
commercial finance
What
is a Company Mortgage
Please
be aware gnerally the majority of UK commercial lending
is not FSA regulated. A commercial deal is not for residential
purposes but used for commercial enterprise. It may
be used to start
a business by buying a bricks and mortar property in
order to commercially trade. That
might include a shop, industrial unit, warehousing,
hotel, restaurant and land development. It may be used
to buy other outlets, units, and premises for that business.
Or just a bigger or more suitable premises to deal with
company growth and relocation.
Generally
a lender or bank will be looking to lend a company mortgage
on a leasehold or free hold basis. They will generally
run for a minimum of 15 years up to 25 years. But the
new property or land will be at risk if loan payments
are not regularly paid on time.
Business
finance may be for developing property, property extension
of existing premises, business investment and new premises.
The majority of banks will support business finance
as it is a very profitable element to their business.
Generally high street lenders will have strict criteria
for commercial lending including full status, detailed
paperwork requirements, a healthy business background,
low loan to value, excellent credit history and perhaps
taking other securities on the loan for example property
charges, guarantor, debentures and investment funds.
Often
the lender will be looking for a detailed business plan
where cash flow margins and turnover for example will
be examined to indicate the company stability and profitability,
to assess the risk of the potential loan. Some lenders
may include restrictions on the usage of the premises
and certain concerns may be excluded or made conditional
in the mortgage offer.
