August 22nd, 2023

How Do Commercial Mortgages Work?  

Understanding the Ins and Outs of Commercial Mortgages for Your Business 

Introduction to Commercial Mortgages 

Welcome to Assetz Capital’s comprehensive guide on commercial mortgages! If you’re a business owner looking to expand, purchase, or refinance a property, understanding how commercial mortgages work is essential. This blog will walk you through the process in a friendly and informative tone, ensuring you have all the information you need to make well-informed decisions. 

What are Commercial Mortgages? 

A commercial mortgage is a loan taken out by a business or individual to purchase, refinance, or develop a property that will be used for commercial purposes. These mortgages differ from residential mortgages, which are taken out for personal properties. Commercial properties can include office spaces, retail outlets, warehouses, and more. At Assetz Capital, we offer flexible and tailored commercial mortgage solutions to suit your business’s needs. 

The Benefits of Commercial Mortgages 

Commercial mortgages offer numerous benefits for businesses, making them an attractive financing option: 

Lower Interest Rates: Commercial mortgages typically have lower interest rates compared to unsecured loans or other forms of business financing. This can lead to substantial savings over time. 

Long Repayment Terms: These mortgages often come with longer repayment terms, making it easier for businesses to manage cash flow effectively. 

Ownership and Equity: As the borrower, you’ll gain ownership of the property, building equity over time, and potentially benefiting from property appreciation. 

Tailored Solutions: At Assetz Capital, we understand that each business is unique. Our commercial mortgages are designed to be flexible and cater to your specific needs. 

Eligibility Criteria for Commercial Mortgages 

Before applying for a commercial mortgage, it’s essential to understand the eligibility criteria. While these can vary, some common factors considered include: 

Business Financials: Lenders will review your business’s financial statements, including income, expenses, and cash flow to assess your repayment capacity. 

Creditworthiness: A good credit score enhances your chances of securing a commercial mortgage with favourable terms.  

Property Value and Condition: The property you intend to purchase or refinance will undergo a valuation process to determine its current worth and condition. 

Types of Commercial Mortgages 

Assetz Capital offers various commercial mortgage options to suit different business needs. Some common types include: 

Owner-Occupied Commercial Mortgages: Ideal for businesses that plan to operate from the purchased property. 

Commercial Investment Mortgages: Designed for those looking to invest in commercial properties for rental income or future resale. 

Commercial Development Finance: If you plan to refurbish or develop a property, this option provides the necessary funds for residential refurbishment projects or other commercial ventures. 

The Application Process 

Applying for a commercial mortgage with Assetz Capital is a straightforward process. Our experienced team will guide you through each step, ensuring a smooth and efficient application: 

Initial Consultation: Reach out to our team to discuss your financing needs and goals. 

Documentation: Prepare the required documents, including financial statements, business plans, and property details. 

Valuation: Our team will arrange for a professional valuation of the property you wish to purchase or refinance. 

Offer and Approval: Once the valuation is complete and your application is approved, we will present you with a tailored commercial mortgage offer. 

Completion: Upon accepting the offer, the necessary legalities will be finalised, and funds will be transferred to complete the transaction. 

Case Studies – Real Success Stories 

If you’d like to take a look at some real success stories when it comes to Assetz Capital Commercial Mortgages check out our case studies here

Whether you’re a small enterprise or a growing business, we have the expertise and dedication to support your goals. 

If you would like to explore potential funding solutions, do not hesitate to connect with our team of property experts today and check out our social media pages