Commercial Mortgages - Uses and Benefits

Taking out a commercial mortgage doesn’t simply fund business premises. The cash raised or cash flow generated can benefit your company in many different ways.

• Buying new or larger premises to allow your company to expand.
• To refurbish or extend office or factory space.
• To refinance an existing mortgage or loans
• To consolidate any business debts
• To finance any large purchases your company may need such as vehicles or machinery
• To raise cash by using the equity tied up in your premises

If you are renting your business premises your landlord will usually ask for 130% of his monthly mortgage payment as rent. Therefore paying a monthly mortgage could decrease your monthly outgoings.

As with all property, when property prices increase you will benefit from the equity tied up in your premises. However unlike with a residential property, the value of your business will also be increasing as it grows, therefore building up even more equity which can be accessed through a commercial mortgage.

Remortgaging your property to pay off existing loans and debts will decrease your monthly outgoings. Remortgaging may also mean that you get a better deal with your mortgage by paying a lower interest rate.

Remortgaging to raise cash is more cost effective than taking out a commercial loan as the interest rate will be as much as 3 to 4 percentage points lower than that of an unsecured loan.

More Commercial Mortgage Topics:

• Would It Work? - why a commercial mortgage would work for your business
• Use and Benefits - weigh up the pros and cons
• Who Can Get One? - who can take out a commercial mortgage?
• Bad Credit History - don't let credit history stop you
• Self Certification - make sure you have the right documents
• Property Types - property types that we allow
• Our Commercial Mortgages - how our mortgages work
• Interest Rates - understand interest rates with some examples
• Security - make sure you're secure
• Fees - understanding confusing legal fees
• Filling in an Application Form - don't worry they're easy - learn here

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