Commercial Finance

Helping businesses grow in the right direction

Northern Property Finance can provide advice to potential clients on all aspects of commercial finance. With a wealth of experience gained from the banking industry, our team can recommend appropriate financial solutions.

What is Commercial Finance?

Commercial finance is a loan available to new and established business owners. A commercial mortgage can assist in the purchase of a property that is going to be used primarily for business use or trade.

When would you need a commercial mortgage?

Compared to a normal loan which is unsecured, commercial mortgages can offer a higher level of borrowing because they are secured against an asset. This allows business owners the option to potentially purchase new premises or expand the business by reducing the level of risk. Typically the property you are looking to purchase would be used as security used against your borrowing and could be over a term of up to 25 years.

A commercial mortgage could be used to purchase an office, shop, or industrial unit for your own business to use. An alternative could be purchasing an investment property to rent out to another business owner.

Higher interests rates may be charged by commercial lenders due to their specialist criteria and the rates are based on the products available and the strength of the proposal. Our advisor will assess you current circumstances and recommend a solution that best meets your business requirements. Commercial mortgages are assessed on a case by case basis.

Commercial properties considered:

  • Offices
  • Industrial Units
  • Retail/Shops
  • Retail/Shops with residential premises above
  • Investment Properties
  • Land Purchase
  • Developments

Can you get a commercial mortgage?

Lenders will assess commercial mortgages on a case by case basis, however ensuring your current business is running smoothly and efficiently will help benefit an application. Your business experience and trading history will help identify the business’s success and whether it is a sustainable to lend to in assisting with an onward purchase. This will be based on how much you are potentially looking to borrow and these figures will need to be affordable for the business.

It’s important to remember that the security could be the property you are looking to purchase and this would be at risk should you fail to keep up with your monthly payments. You would require a deposit of between 30-40% of the value of the property to assist with the purchase of a commercial premises; this may vary between lenders

We understand that every business is different and may have their own bespoke requirements, which is why our advisor is here to help identify the right path for you. Our knowledge and experience at Northern Property Finance can ensure a clear understanding of what is required within the business market, helping the transaction to run as smoothly as possible for the benefit of the business.

We will provide a free, no obligation initial consultation and assessment of your business requirements and offer expert advice and recommendations tailored to you and your business

Top tips to consider when applying for a commercial mortgage:

  • Commercial mortgages are generally more expensive compared to residential or buy to let mortgages so it is important to consider additional fees e.g. valuation fees, lender arrangement fees, legal fees
  • Experience in business trading and growth are extremely important when considering your proposal. Identifying key strengths and business development will help to support your application. It’s important to remember that providers may not lend to business who show a loss in their accounts or have bad credit.
  • You would require a deposit of between 30-40% of the value of the property to assist with the purchase. It is important to identify the source of the deposit and if it is affordable
  • You will be asked to supply additional information to support the commercial mortgage application, lenders will need to effectively assess your past, present and future circumstances within the business. It’s important that you supply what is required to ensure they have a full assessment of your business.
  • It is important to discuss your options with an expert to help identify your requirements and what is available to you and your business. Our advisor at Northern Property Finance is here to offer you the correct guidance and advice on your business plans