Financing a Commercial Property Purchase with a Secured Loan

May 23, 2017 | by | 0 Comments


The majority of us would automatically assume that running a successful business would prove to be of enormous benefit when trying to raise capital, particularly when applying for a commercial property mortgage at a local banking branch or building society.  

However, since the financial crisis of 2007-2008, and the economical uncertainty that the Brexit vote introduced, the banking sector as a whole has become decidedly more cautious and tentatively less eager to lend funds to the small companies and growing businesses that need their support the most.

Although one can easily understand why this is the case, it does nothing to help those who have been declined the finance they require.  

A Reliable Way Forward

Fortunately, the high street banks and building societies are not the only lenders you can approach when you are trying to take your company to the next level of success.  There are now many FCA regulated bridging finance brokers offering new, streamlined alternatives to conventional mortgage products for commercial property transactions.  If you are a business owner or entrepreneurial landlord in search of raising the cash to purchase an industrial building, or some other commercial property type, then one of the less obvious options is a secured loan.

Secured Loans – The Main Advantages

Although the banks and building societies still play a huge part of the daily running of almost any type of business imaginable, a secured loan from a specialist broker is often the most logical and sensible choice and, in certain scenarios – the only available option.  

Here are some of the key advantages that a secured loan can offer a growing business.

* Fast Access To Funds.  Secured loans are quick to arrange and in some cases the funds can be cleared and released in a matter of days, or a couple of weeks.  Even if you are looking to borrow a considerable amount, most lenders are happy to work quickly so that you can access the capital you need with the minimum amount of delay.

* Streamlined Application Process.  Whereas most traditional commercial loan products can be an absolute nightmare to apply for, the secured loan application procedure is quite the opposite.  Provided you have the required collateral to serve as security, a decision to lend in principle can be made within a quarter of an hour or less.

* High Approval and Acceptance Rates.  Most business loan providers require extensive proof of a company’s financial performance and the lender will often expect you to have a strong credit rating whilst satisfying additional borrowing criteria.  With secured loans, you only need to show that you can pay off the loan using the equity in the assets you are offering as security.

* Increased Flexibility.  When a loan is secured against a property asset, the lender will often be much more lenient and flexible in terms of repayments and loan terms

* Low Costs. Provided you shop around and always make sure you are dealing with a reputable lender, a secured commercial loan can often be much more affordable than a conventional business loan or mortgaging product.

With so many benefits on offer, secured loans for business purposes are quite often the most practical, convenient and financially sensible borrowing product on the table.  Of course, if you are planning to apply for a secured loan as a means of raising the capital to purchase a new premises then it always makes sense to speak to an independent, FCA authorized and regulated advisor who is required by law to serve your best interests.. –

Category: Property

Add your comment

Libellous and abusive comments are not allowed. Please read our House Rules

For information about privacy and cookies please read our Privacy Policy