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Running a business

What are commercial mortgage loans?

What are commercial mortgage loans, image of someone working from their own food truck | Crunch

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    Commercial mortgages are simply loans for your business rather than for you personally.

    A commercial mortgage can help a business in so many different ways, from purchasing your own premises and business equipment (such as machinery and vehicles), by taking the place of a traditional bank loan and overdraft, or even for helping you control your cash flow by allowing you to receive your income before your clients can pay you (known as factoring).   

    If you want to grow your business or make use of your cash in a better way, there’s likely a commercial finance package that will enable you to do so.

    Who can get a commercial mortgage?

    If you’re a Trading Business, a limited company, or a PLC, you can apply for a number of commercial loans.

    In reality, there are currently more than 100 specialist commercial lenders in the UK, each one with their own criteria, rates, credit appetite, and geographic focus. Positively, this means that whatever your business needs are, there’s likely to be a lender out there who’ll listen to you.

    How hard is it to get a commercial mortgage?

    However, due to the sheer volume and variety of lenders, it could take a lot of time for you to research the best one. But that’s where we come in.

    With over 30 years of experience as independent brokers, Crunch Mortgages have developed lasting relationships with lenders covering all different business types and lending needs. We’re able to deal with the most appropriate lender for you, ensuring that you pay the correct fees, secure the lowest rate, and select the best type of loan for your business.

    Why would it benefit my company?

    Perhaps you would like to own your own premises rather than pay rent each year? Maybe factoring, where your invoices are paid to you in advance, would be helpful? Or maybe you have to rely on your bank for letters of credit if you regularly need to finance purchases?

    These are all areas where a commercial finance agreement would be better for you than traditional banks or using your own cash.  

    There remains a high level of commercial funding available in the market for businesses, so it’s certainly very sensible to talk to a specialist broker who can independently advise and access the best lender suited to your business from across the market.

    Get in touch with us today for your free consultation.