A commercial mortgage could be the stepping stone to expansion

Brought to you by Wesleyan Bank

In this blog we take a look at commercial property ownership and we highlight the key considerations that should be taken when applying for finance.

The decision to buy rather than rent is an important step for many businesses. Once the perfect property has been located, the next step is to choose the right mortgage solution. 

Navigating the different options

Different providers will lend different minimum figures against the value of the property and will offer different repayment periods and fixed or variable interest rates.

Some may also impose limitations on the use of the property, which should be kept in mind if the plans of the business include sub-letting part of the building.

Requirements

Before approaching a financial lender, it is important to determine the amount the business can afford to pay each month. Providers will want to see proof that the business can comfortably afford the repayments bank statements, including documentation detailing its trading history, cash flow forecasts, estimated outgoings and copies of sales contracts. 

As well as carrying out necessary credit checks, financial providers will want to know about the background of all the key stakeholders involved in the business to assess their relevant trading experience. The business owner may also be required to provide personal asset and liability statements. 

Specialist lenders

To find the best finance provider, it may be useful to ask them about their specialist experience. Do they understand the challenges the firm is likely to face? Are they willing to offer a flexible solution to fulfil their particular business requirements?  

Specialist lenders, such as Wesleyan Bank, will offer loans up to 85% of the property's value for owner-occupied trading premises with loan amounts from £100,000 to £5m over a term of ten to 25 years. 

Having detailed conversations with the chosen financial partner is essential for any business owners looking for a tailored commercial mortgage solution that can bring their business forward, increase the control over their finances and benefit from an improved cash flow to help them grow and invest.

To find out more about tailored commercial mortgage solutions as well as other external finance options, call 0800 980 9340 or email [email protected].