A commercial mortgage is most likely the best way to finance the purchase of land and/or buildings for your business, as it probably provides the most flexible and affordable financing solution. A commercial mortgage is a specialised commercial loan in which the lender has a legal claim over the property until the loan has fully been repaid. When arranging a mortgage, consider its effects on your cash flow and assets. You may wish to consult your accounting and tax advisors before finalising a loan to reap the maximum benefit and avoid complications.
Commercial mortgages may be structured several different ways but the two most important aspects to consider are the interest rate (type) and the repayment schedule for the mortgage.
Retain Ownership:
Instead of raising funds by selling a share in the property or the business to an investor, you retain complete ownership. The lender is only entitled to an interest return on its mortgage, not a percentage of ownership that an investor would expect. Also they can only exercise the right if you default on payment. You retain all the benefits of ownership in an asset that has the potential to increase in value.
Mortgage & Remortgage Specialists