Commercial financing criteria
Commercial mortgage lending varies from residential mortgages in terms of affordability assessments, eligibility criteria, and the rates and terms available.
The benefit of using professional commercial finance brokers is that you have access to the entirety of the market, without any product restrictions or limitations on the lenders you have access to.
Our established networks of specialist commercial property mortgage lenders work with our commercial finance brokers to negotiate terms and structure tailored commercial property lending for each of our valued clients.
Commercial property lending and credit ratings
Whether raising a commercial property mortgage to invest in a new site, remortgaging to raise capital, or seeking help from commercial finance brokers to release cash flow against your assets, credit rating is something we are often asked about.
Appraisals for commercial property mortgages for businesses differ than for individuals since the company is providing the primary security. However, most lenders will also assess the liquidity and credit history of the business owners.
You may also be asked to offer personal guarantees, if there are any circumstances in the businesses trading - for example, being newly incorporated - that means it cannot provide sufficient security.
Many applicants do not have perfect credit ratings, and this is not a precursor to being unable to secure competitive commercial property lending.
Give our commercial finance brokers team a call today on 0330 304 3040, and we will help you source the right mortgage lending for your business.
Purposes of commercial property mortgage loans
Revolution, as commercial finance brokers, works with a wide variety of clients and businesses looking to raise mortgage finance, or remortgage an existing property asset.
Commercial mortgages are not restricted to buying property to conduct your business from and may be used for multiple other purposes.
These include purchase investment properties to let, including HMOs (houses of multiple occupancies), so are a flexible solution to raising finance with competitive terms.
Why use Revolution Commercial Finance Brokers for your commercial mortgage?
Working with commercial finance brokers means having an independent expert on your team, here to assist you with getting the most value out of your commercial property mortgage loan.
Our expert team of consultants have an in-depth understanding of the commercial mortgage sector and collaborate with an extensive network of reputable lenders. We tailor our offers to your needs and negotiate with lenders on your behalf to secure the best possible rates and terms.
There is no one size fits all in your commercial property lending, and Revolution commercial finance brokers go the extra mile to ensure that you know precisely what the options are, and the advantages and disadvantages to each.
What makes Revolution Finance different as Commercial Finance Brokers?
With our extensive market access, we can offer:
- New commercial property mortgages as they come onto the market.
- Bespoke terms and rates negotiated with your lender.
- Fast processing and support with documentation and paperwork.
- Exclusive access to offers and opportunities not on the open market.
- Tailored mortgage solutions to best fit your business.
- Independent advice on which mortgage products are most competitive.
- Mortgage support for applicants who have been rejected elsewhere.
- Specialist mortgage solutions for non-mainstream products.
Our commercial finance brokers work to the highest standards of professionalism and are a friendly and experienced team who will work with you to understand how our services can help you.
We pay close attention to detail, with an ethos of complete transparency, so you always know all the options available, and the costs and fees involved with each.
Revolution commercial finance brokers can support you with every aspect of your application, from completing paperwork with you to demonstrating affordability and meeting your chosen lenders' criteria.
Types of commercial property mortgage offered by commercial finance brokers
You will find a wide range of commercial mortgage options available, and Revolution commercial finance brokers work to broker deals that exceed the competitiveness of offers available on the open market.
Typically security is not required for commercial property lending up to £25k, but for more significant mortgages the security will usually consist of a charge held against the property, and potentially other forms of protection which your commercial finance brokers can negotiate.
Most commercial property mortgages have a term from three to twenty-five years, although if you require short-term financing, there are other products available such as bridging finance that might be a more cost-effective way of raising cash flow funds quickly.
Another factor to consider is the loan to value ratio. This is the proportion of lending against the value of the property being financed. For investment properties, it is the anticipated annual revenue achievable from rental income against the value of the borrowing.
Many mainstream commercial property lending firms will offer a maximum LTV ratio of 70-75%, meaning that you will need to have a 25-30% deposit in place to move forward. Revolution commercial finance brokers work with specialist commercial property mortgage lenders who can negotiate on LTV terms and offer incredibly competitive rates with high LTVs.
Benefits of using commercial property lending
Borrowing against a commercial property can raise finance for any number of reasons. As commercial finance brokers we can help you to:
- To purchase a premise or an investment property.
- To refurbish, fit-out or modernise an existing asset.
- To remortgage at more competitive interest rates.
- To raise finance for other working capital requirements.
There are multiple benefits to choosing a commercial mortgage as your form of lending. Revolution commercial finance brokers will work with you to understand your funding needs and will recommend alternative products if we anticipate that they will be more cost-effective or better suited to your plans.
Benefits to choosing commercial property mortgage loans organised by commercial finance brokers include:
- Tax-efficiencies with interest payable on your commercial mortgage is tax-deductible.
- Capital growth in line with increases in the value of your property.
- Potential for rental revenue with investment properties to let.
For help from the leading commercial finance brokers in assessing your commercial mortgage lending needs, give us a call today on 0330 304 3040.
2023-05-09 
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