Property finance involves using business premises as security to obtain a loan. There are several options available including mortgages and bridging loans.
Property finance involves using your business premises as security with which to obtain a loan. There are different options available depending on the type of property you have, and also how long you will need the funding for. The most common types are as follows:
- Bridging Finance - A bridging loan is a short-term solution which helps to ‘bridge’ the gap between your current situation and other funds becoming available. A bridging loan should only be taken out if you have funds in the pipeline which can clear the loan in full.
- Commercial Mortgages – A commercial mortgage is a mortgage loan secured on commercial property such as an office building, industrial warehouse, or a new build estate. A mortgage is a long-term funding option, and typically allows you to borrow a substantial amount of money and pay it back over a long period of time.
- Development Finance - This is funding to aid in the development of houses or flats, or to assist with extensive refurbishment or structural renovations. Development finance is designed to be a short-term lending option while the build is being completed. Once the build is finished you may then want to take out a standard commercial mortgage to pay off the development loan.