What is commercial finance?
Commercial lending can cover a number of different areas and here is a quick guide to the main areas covered by commercial finance:
- Mixed use – usually means a shop or office on the ground floor with flats or apartments above. So the mixed use is a mix of commercial and residential.
- Buy to Let portfolio’s where the number held is too large for the traditional BTL lenders
- Offices or office blocks
- Care homes, nursery, GP surgery, dentists, vets
- Hotels and leisure complexes
- Industrial, warehousing, distribution
- Pubs, restaurants, cafés, shops
If you are buying an existing premises or business then commercial finance could be right for you.
Commercial finance is often a lower loan to value but typically a lower cost and can be spread over a longer term or include full amortisation of the loan.
Commercial finance is influenced by lease terms if you are the landlord, or business performance if you are the owner.