This type of finance is for corporate and commercial trading entities trading in the UK or overseas.
Finance is split into a number of areas. Working capital and commercial mortgages are detailed below whilst the others are outlined in different sections (click on the service and it will take you to the appropriate section).
Commercial mortgages are loans available to business owners to fund the purchase or expansion of a trading premises. This funding can be used to buy the premises, or to raise finance for a wide variety of other business-related uses. Generally, these are owned/purchased in the business’ name, but commercial mortgages can be structured in separate property companies or via an individual’s pension scheme, depending on what the long term aims and aspirations of the company owners are.
Commercial mortgages are still widely available and we are generally able to secure better terms than those for standalone real estate finance, due to lower capital adequacy cost incurred by the banks. There are a number of institutions across the UK offering this product, with a variety of differing terms, costs and conditions. Several of them are specialist lenders who are active in this marketplace. These funders have differing appetite levels, depending on their assessment of the underlying sector within which the business trades, but also fundamentals of the business’ actual trading performance and forecasts.
Interest-only commercial mortgages, loan terms of up to 30 years and standalone facilities are available in the market. Loan to values (LTVs) in excess of 85% on certain cases are also available. The key is structuring the loan to meet the requirements of the client, whether that is short or longer term.
Working Capital Facilities
Short to medium-term cash flow funding is available from a number of institutions. This type of funding is generally required for a specific reason:
- Winning of a new business or contract
- Increased sales activity
- Changes in debtor/creditor terms
- Increased or changed stock requirement
- Pricing pressure
- New business line/associated but new venture