What is Commercial Finance?

Posted by Mortgage Squared on 17th August 2020 -

If you are looking to buy a commercial property or to raise funds on a commercial property you already own, then commercial finance could be the answer.

For those that aren’t sure how it works the commercial finance would be secured on commercial properties in the same manner as standard residential property loan.

What is commercial finance?

Commercial Finance is any loan secured on property which is not your residence. This can be either owner occupied or buyer investment.

This kind if finance is when you secure capital against a property that is used for commercial purposes such as an office or a shop. Squared Commercial Finance have stepped confidently into the market to support the marketplace. We are a whole of market commercial finance broker that are able to offer brilliant rates to many of our commercial customers.

There are two main categories of finance –

Buyer investment

This is where the client owns the property as an investment but has no attachment to the commercial side of things. An office block that a local business leases from the owner or sometimes residential flats. The investor receives payment from the property through lease or rental payments.

Owner Occupied

This is where a client owns a property where they have a commercial venture such as shops, factories, garages or offices. The owner then repays the loan through the profits of the business.

If you are looking to expand the business, make improvements within the commercial property or maybe relocating then commercial bridging loans could be of help.

Squared Commercial Finance are able to provide commercial finance options that are not available within the mainstream lending channels and sometimes competing brokers.

Why would you choose to use commercial finance?

Commercial finance is used for various reasons such as building improvements, purchasing new properties and business cash injections.

Some people decide to convert a commercial property into a residential property, e.g. office into a block of flats. In these circumstances you could get commercial finance secured against the property to either fund the purchase of the property and convert it or if the property is already owned this can help with the conversion itself.

If you are currently looking to have a chat with an advisor to discuss your options then please give us a call on 08081 551 807.