A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.
They can also be used to buy other business assets such as plant or machinery.
Commercial mortgages are often used to buy business premises, such as offices, shops, pubs, or restaurants.
A commercial mortgage can be used to buy most types of commercial buildings, such as offices and shops, for both existing and new businesses.
The interest rates on commercial mortgages tend to be lower than the interest rates on unsecured business loans and the repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.
A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property.
As being a useful way of financing the purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding the expansion of an existing business.
What About a Remortgage?
A commercial remortgage allows you to unlock some of the equity that is currently tied up in your commercial property. It could also be a chance to switch to a more competitive, cheaper mortgage, especially if your or your company’s credit rating and business history have improved since you took out your original commercial mortgage.
The money you free up through a commercial remortgage can be used for all sorts of things for your business. You could purchase additional stock, or invest in new machinery or other fixed assets such as vehicles. Another use for the extra money can be to pay off outstanding bills, or clear other borrowings such as the company’s overdraft.
You might find you could benefit from remortgaging if you already have a commercial mortgage on your company’s business premises.
Here are some typical uses for a commercial mortgage or remortgage:
More information about Commercial Loans can be found on our website.
Borrowing money to buy a shop
Raising finance to purchase an office building
Buying a pub
Financing the purchase of a restaurant
Buying a hotel
Buying a house to convert to a Bed & Breakfast (B&B).
Raising finance to buy an existing business.
Clearing a business overdraft.
Improving business cashflow.
Buying new plant or machinery.
Financing the purchase of company vans and other vehicles.
Borrowing money to buy extra stock for your business.
Funding the expansion or refurbishment of your offices.
Borrowing money to pay for training.
Buying land for business purposes.