Hassle free commercial finance from UK experts

Commercial term loans provide businesses with the money they need to grow and expand. When used correctly, these loans can be a powerful tool for businesses of all sizes. However, it’s important to understand the benefits and risks associated with them before you apply.

There are several benefits to using a commercial term loan to finance your business:

  1. You can use the money for any business purpose.
  2. The interest rate is usually lower than other types of financing, such as a credit card or an SBA loan.
  3. The repayment terms are typically flexible, which can help you better manage your cash flow.
  4. There is no collateral required for most loans, which means you won’t have to put up your personal assets as collateral.

However, there are also some risks associated with commercial term loans:

  1. The interest rate can be higher than a traditional bank loan, which can make the loan more expensive.
  2. If you don’t make your payments on time, you may be charged late fees or your loan could go into default.
  3. Your business may be required to provide collateral, such as equipment or inventory, which could be seized if you can’t repay the loan.

Before you apply for a commercial term loan, it’s important to understand the pros and cons and make sure it’s the right type of financing for your business.

Commercial term mortgages are split into two groups:

Full commercial mortgage – Small and large scale commercial properties

Semi commercial mortgage – Commercial properties with residential flats above

When should I not take out a commercial loan?

There are times when you should not take out a commercial term loan. If your business is just starting out, for example, you may not be eligible for a loan from a traditional lender. You may also want to avoid a commercial term loan if you can’t afford to make the monthly payments.

Another time when you may want to avoid a commercial term loan is if you don’t have a good credit history. Many lenders will only approve loans for businesses with good credit, so if yours is bad, you may not be able to get a loan.

Finally, you may want to avoid a commercial term loan if you need money for a short-term need. These loans are typically repaid over a period of one to five years, so if you only need money for a few months, you may be better off with another type of financing.

Commercial term finance applications are often processed very quickly, with high LTV’s and low deposits so is a highly popular choice for commercial investors.

To get started with your commercial term loan, please speak to a member of our team today

Get in touch with a member of our team to start your commercial finance enquiry

What can you use commercial finance for?

Most commonly used by landlords, homeowners and property developers to: