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.
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