August 29th, 2023

How to Get Your Commercial Mortgage Application Approved 

A Comprehensive Guide by Assetz Capital 

Welcome to Assetz Capital’s comprehensive guide on getting your commercial mortgage application approved. We understand that navigating the world of commercial lending can be overwhelming, but fear not! We’re here to simplify the process and equip you with valuable tips and insights. Whether you’re a small business owner or an entrepreneur with big ambitions, securing a commercial mortgage is a crucial step towards achieving your goals. In this blog, we’ll cover everything from understanding the application process to highlighting essential factors that can boost your chances of approval. Let’s dive in. 

Fuelling Business Growth and Expansion 

Commercial mortgages play a vital role in fuelling business growth and expansion. Did you know that commercial property investment in the UK accounted for £56 billion in 2022? That’s a significant chunk of capital being invested in properties that drive various industries forward. By obtaining a commercial mortgage, you gain access to the necessary funds for acquiring, developing, or refinancing commercial properties, which can be used for a range of purposes, such as office space, retail premises, or industrial units. 

From Application to Approval 

Before diving into the application process, it’s important to familiarise yourself with the general requirements and steps involved. Typically, a commercial mortgage application involves: 

Completing an application form: Provide detailed information about your business, including financial statements, projections, and the purpose of the loan. 

Property valuation: A professional surveyor assesses the value of the property to determine its suitability as collateral. 

Legal documentation: Prepare legal documents, such as title deeds and contracts, to ensure a smooth transaction. 

Financial assessment: Lenders evaluate your business’s financial health, including cash flow, profitability, and credit history. 

Due diligence: Lenders conduct thorough checks to verify the information provided and assess the risk associated with the loan. 

Setting Yourself Up for Success 

To increase your chances of getting your commercial mortgage application approved, consider these essential factors: 

Solid business plan: Craft a comprehensive business plan that outlines your objectives, strategies, and how the loan will contribute to your success. Highlight your experience, target market, and competitive advantage. 

Demonstrated profitability: Lenders prefer borrowers with a proven track record of profitability. Provide financial statements that show consistent revenue and healthy profit margins. 

Strong credit history: Maintain a good credit score and demonstrate responsible credit management. Ensure your business and personal finances are in order. 

Property selection: Choose a property that holds value and aligns with your business needs. Consider location, potential for growth, and the property’s condition. 

Dotting the “I”s and Crossing the “T”s 

Accurate and complete documentation is crucial for a successful commercial mortgage application. Ensure you have the following documents readily available: 

Business financial statements: Balance sheets, profit and loss statements, and cash flow statements. 

Personal financial statements: Details of personal assets, liabilities, and income. 

Tax returns: Provide both personal and business tax returns for the past few years. 

Legal documentation: Property deeds, licenses, contracts, and any other relevant legal documents. 

Partnering with Experts 

Navigating the complexities of commercial mortgages can be daunting. Seeking professional advice from experts in the field, such as our experienced team at Assetz Capital, can provide valuable insights and guidance throughout the application process. Their expertise can help you make informed decisions, avoid pitfalls, and increase your chances of success. 

Building Trust and Credibility 

Building strong relationships with lenders is crucial for obtaining a commercial mortgage. Establishing trust and credibility requires maintaining open lines of communication, providing accurate information promptly, and demonstrating your commitment to the partnership. A positive and professional relationship can pave the way for future financial opportunities and a smoother loan approval process. 

Unlocking Your Business’s Potential 

Securing a commercial mortgage is a significant milestone for any business. By understanding the application process, focusing on essential factors for approval, and gathering the necessary documentation, you can position yourself for success. Remember, Assetz Capital is here to support you throughout your commercial mortgage journey. Together, let’s unlock the potential of your business and drive it towards new heights.