"You can save time and money by applying for a mortgage loan online." This often touted tagline seems like a gimmick, but it's true. Here's why: You Do The Work By researching your loan online, you save time from visiting an office and getting the run-around from loan officers. It is unlikely you will get a straight mortgage quote from a bank over the phone, but you can get quotes from several...

Boost Your Business with a Commercial Mortgage

David Miles

Long term commercial finance, in the form of a commercial mortgage, offers many small and medium sized
enterprises (SMEs) the ability to invest in their business with new technology, new or refurbished
premises, or increased stock levels.

In the past, it tended to be only larger organisations with a proven track record who could obtain commercial mortgages. A large number of younger/smaller businesses were unable to obtain this type of commercial finance and, as a result, many businesses have been forced to rely on expensive short term finance or left to use their owners' residential property as security.

Fortunately, this gap in the market is now being targeted by specialist commercial lenders who are willing to serve the commercial mortgage needs of SMEs and owner-managed businesses.

The problem

In the past, it has been difficult for small business borrowers, self-employed traders, and
partnerships to raise commercial mortgage finance. This is because:

Institutional lenders have focused on larger, corporate lending secured on the tenant covenant of investment properties. This sector is seen as being low risk and so has become a favourite of
many traditional lenders.

The lending criteria of many mainstream commercial lenders disqualify applicants who do not have three years' audited account, those without business plans, or those with a less than perfect credit history. As the UK workforce migrates more towards self-employment, greater flexibility is required from lenders to assess each case on its individual merits. Until recently, this flexibility has been hard to find. Similarly, in the past, the requirement for three years' accounts has been a barrier to new or young businesses.

The solution

To address these problems, a number of commercial mortgage lenders now offer commercial mortgages with some or all of the following features:

Available to small owner managed limited companies, partnerships, and self-employed sole-traders

Self-certification option - no need for three years' accounts

Finance available for any purpose - no bank imposed restrictions

Mortgage arrears, CCJs, IVAs, discharged bankruptcy all considered

Same day indicative offers

Completion in weeks, not months

Transparent mortgage tracking Bank Base Rate

Mortgage term of up to thirty years

Advances from Ł50,000 up to Ł1.5m

To find out more about how commercial finance could help you, whether you have an existing business or are just starting out, visit Online Commercial Mortgages.

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Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.

About the Author

David Miles edits a number of finance websites, including TheCashClinic.com - a UK Personal Finance Portal.

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