A commercial mortgage or commercial remortgage is a commercial loan that is secured against commercial property.
Commercial mortgages are often used to purchase commercial premises, such as offices, shops, restaurants, or pubs.
But they can also be used to buy other business assets, such as plants or machinery.
As well as being a useful way to finance the purchase of commercial premises for a new business, commercial mortgages can also be a great way to finance the expansion of an existing business.
A commercial mortgage can also be used to finance investments in land or property that will be used for business purposes.
A commercial mortgage can be used to purchase most types of commercial buildings, such as stores and offices, for both new and existing businesses.
Commercial mortgage interest rates tend to be lower than unsecured business loan interest rates, and payment terms are often longer. This makes them useful for all kinds of business financing requirements.
What about a Remortgage?
If you already have a commercial mortgage on your company’s business premises, you may benefit from a new mortgage.
A new commercial mortgage allows you to unlock some of the equity that is currently tied up in your commercial property. It could also be an opportunity to switch to a cheaper, more competitive mortgage, especially if your or your company’s credit rating and business history have improved since you got your original business mortgage.
The money you free up through a new business mortgage can be used for all kinds of things for your business. For example, you could buy additional shares of stock or invest in new machinery or other fixed assets, such as vehicles. Another use for the extra money may be to pay off outstanding bills or pay off other loans, such as a business overdraft.
Here are some typical uses for a business mortgage or a new mortgage:
- Borrow money to buy a store
- Fundraising to buy an office building
- buy a tavern
- Financing the purchase of a restaurant
- buy a hotel
- Buy a house to convert it into a Bed & Breakfast (B&B)
- Raising funds to buy an existing business
- Clearing a Business Overdraft
- Improved business cash flow
- Purchase of new plant or machinery
- Financing the purchase of company vans and other vehicles
- Borrowing money to purchase additional shares for your business
- Financing of the extension or reform of its offices
- Borrowing money to pay for training.
- Purchase of land for commercial purposes.
You can find more information about business mortgages and business loans on the Business Mortgage Online website.
Copyright 2004 David Miles. You are welcome to reproduce this article on your website, provided it is posted “as is” (unedited) and with the author’s bio paragraph (resource box) and copyright information included. Also, all links to external websites must be kept in place.
