Commercial Loans

Commercial Lending (By Referrral Only)

*The Financial Conduct Authority do not regulate Commercial Mortgages*

In recent years commercial loans have become harder and harder to acquire due to the weakness of the economy and the tightening of lenders rules and criteria. It is however, still possible to acquire the finance you need as long as your case is sound and presented in a clear and reasoned manner to the lender.

Before agreeing upon a commercial mortgage the lender involved will want to be sure that your business is on a sound financial footing. The lender will have a general list of criteria that need to be met before any deal can be finalised – the main concerns being:

• - You will be able to fully repay the money
• - The value of the business property is enough to cover the amount borrowed if you were to default on the mortgage

You will also be asked to provide information regarding your business and its financial performance, which will probably include the following:

• - A profit-and-loss forecast for the next twelve months
• - Business bank statements for the previous six months
• - Current business performance indications
• - Audited accounts for the last two years
• - Asset and liability statements for each applicant
• - CVs and/or profiles of each partner or director of your business
• - A full business plan that reveals how the property will contribute to your cashflow and how you intend to repay the loan.

If you are looking to buy a business and property combined, you will need to provide your lender with additional information, such as:

• - Reasons for selling the business
• - Business growth projections
• - The credit status of the business
• - Details of any personal investment involved

It is highly likely that you will need to find a deposit (usually between 20 and 30 per cent of the purchase price of the property)  although some commercial mortgage lenders may be more flexible with their criteria, depending on the availability of security of other factors.