Types of Commercial Loans Available

What commercial loans are available

With commercial finance, there is no ‘template’ or ‘guideline’ to follow. Each application is going to be different, as well as the reasoning for taking out a loan. Contact us for advice.

Clients may include:

  • Individuals that have been rejected by banks, but still have a viable project.
  • Companies looking for a better rate compared to bank interest.

To find out why a bank may reject your application, visit this website.

Commercial Mortgage

This type of mortgage works similar to a residential mortgage, but often has shorter terms and broader uses. A commercial mortgage very rarely exceeds the 20 year line and typically lasts 5-10 years.

Interest rates on commercial mortgages can vary, however are typically between 4.75% and 6.75%. However these rates are variable, meaning they can change depending on the market. A fixed rate mortgage means the interest and re-payments are static.

Refinance Loan

Many business owners take advantage of lower interest rates by commercial refinancing loans. The costs involved in refinancing are normally lower than lower monthly payments and less cumulative debt.

Refinancing can boost profit through expansion or improvement of commercial buildings. Refinancing can also help to pay off left-over expenses, such as the final payment on another loan.

Development Finance

This loan is for a developer looking to purchase a plot of land or property to develop into various properties in order to sell on and make a profit. Banks provide this finance, however their guidelines are extremely strict. We recommend borrowing from a private lender.

Asset Finance

This type of loan is secured against company assets, allowing owners to raise money against resources and materials for business use.  This short term finance is paid over a five year period.