What is Commercial Finance?

Commercial Finance is any loan secured on property which is not your residence. This can be either owner occupied or buyer investment.

This type of finance relates to securing capital against a property which is used for commercial purposes such as a shop or office. Historically this long term funding would be sourced with traditional high street lenders. Their appetite for this market has become very limited since the financial breakdown in 2007/2008. Commercial Property prices took a bigger hit than residential and as a result there are fewer lenders in this marketplace. This has left many commercial property owners bereft of support and finance options.

Challenger Banks have stepped up to support this market place and as Whole of Market Commercial Finance Broker we are able to offer good interest rates to many of our commercial Customers.

The main kinds of Commercial Finance fall into two categories;

Owner Occupied; this is where an individual owns the property in which they have commercial offering. Such as a shop, factory or garage. The owner repays the loan through the profitable return of the business.

Buyer Investment; this is where the individual owns the property as an investment but does not run the commercial element of it. Such as an office block which local businesses lease from the owner or perhaps a building which offers residential flats. The individual simply receives revenue from the property as rental / lease payments.

Commercial Finance can be used for expansion of the business, improvements in the property or help with relocating the business.
It is important to note that any finance raised in either of the scenarios above would only be related to the bricks and mortar of the property. The profitability of the going concern is not taken into account as a lender can only take security for a physical building.

As a whole of market broker UK Property Finance do not source just any deal, we fully assess the client’s specific needs and arrange the very best deal to meet their commercial objectives and strive to offer more favourable terms than the client’s own bank.

We have strong working relationships with all our lenders, so we fully understand their current lending criteria and policies, and can confidently quote terms we know can be delivered and complete deals which otherwise wouldn’t have been possible.

Through these relationships we can also obtain terms not generally available ‘off the street’ which genuinely means we can save our clients both time and money.

Last Updated: Dec 14, 2016 @ 2:09 pm


The advice and processing on all financial products introduced via this website will be handled by UK Property Finance Ltd, which is authorised by The Financial Conduct Authority (FCA) no 667602. The FCA do not regulate all mortgages such as Buy to Let and Commercial. Think Carefully before securing debts against your home. Your property could be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Association of Bridging Professionals
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