Commercial property finance: what are my options? 

Commercial Property Finance allows your business to borrow what it needs by securing your loan against either a residential property, a commercial property or a property portfolio. This type of funding can be ideal for anyone hoping to invest in a new property or make improvements to an existing property.

Let’s explore exactly what commercial property finance is, and what your funding options are if you decide to apply for property finance… 

What is property finance? 

Property finance can help you invest in a new property or refinance existing properties or portfolios. Property finance can also make a wide range of projects possible, from refurbishment through to building from the ground up. 

There are different forms of property finance, such as commercial mortgages, equity release, bridging loans, and development finance, all of which are explained in more detail below.  

What is a Commercial Mortgage? 

Commercial mortgages, also known as business mortgages, let business owners borrow money needed to buy property or land for their business. Similar to a residential mortgage, the lender is repaid in monthly instalments, along with interest.

You might consider applying for a commercial mortgage if:  

– You want to own a premises in which to base your business 

– You are an investor who wants to buy a property to lease to other businesses 

– You are a residential property owner who wants to buy other properties to rent to tenants 

What is Equity Release? 

Equity release allows you to access the equity (cash) tied up in your property. If you’ve built up equity during the course of your mortgage term, refinancing your commercial property loan would enable you to unlock this capital. Many businesses and business owners do this to invest the funds in another property or pay off their firm’s debts. 

What is a Bridging Loan? 

Bridging loans are a way to borrow money in the short term. They can be used to ‘bridge the gap’ if you need to buy one property before selling another. Unlike mortgages, bridging loans can be arranged quickly if speed is important. 

In terms of business property finance, a commercial bridging loan is a short-term loan secured against a commercial or residential investment property. They can be used to purchase property as an investment, as business premises or to fund business expenses. 

What is Development Finance? 

Development finance is a form of short-term funding that provides an injection of cash to assist with the construction or refurbishment of your commercial property. 

Development finance is the ideal option for anyone wanting to undertake construction work on their property. However, applying for development finance can be a relatively complex and time-consuming process, and this is why many businesses use a finance specialist such as PMD to help them with the process.  

Property Finance: How PMD can help: 

When it comes to property finance, PMD has an unrivalled range of solutions and specialists, and can open up a number of flexible, independent and competitive funding lines to suit your individual requirements.  

By getting to know you, your business and its needs we can help you realise opportunities you didn’t even know existed, helping you grow and achieve more. We can provide all the advice and guidance you need, as well as ensuring a streamlined, stress-free process. 

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