Commercial Loans

Financial Services > Mortgages > Commercial > Commercial Loans

Many business loan applicants borrow money to set up a new business, to help with expansion plans or for additional funds to help finance operations. Loans can also be used to renovate business premises or to finance large equipment or vehicle purchases.

A commercial loan can either be set up as either secured or unsecured whereas a commercial mortgage will be secured against the property. Some business loans may also require personal guarantees which could involve the borrower's house forming part of the security for the loan as well as the business itself.

Interest rates vary widely (usually between 1% and 7% over base rate) and usually a secured loan will be cheaper than an unsecured loan. Lenders do not often advertise set rates for business loans but will negotiate a deal specific for each case. Other the terms can also be negotiated and it is always a good idea to be very clear about these at the outset for example some loans may allow for early repayment without penalty, or payment holidays but others may impose stiff penalties for these kinds of options.

The lender will usually want to see monthly cash flow projections, personal financial statements covering at least the last 3 years, a detailed business plan, tax returns, company balance sheets and profit and loss accounts, a management profile and details outlining how the loan will be used. This is not always the case however and there are some reputable lenders willing to look at a case with adverse credit history, either personal or business.

business loan is likely to be a cheaper option than a company overdraft facility and sometimes even if there are funds available, there may be tax advantages against interest payments when borrowing money rather than dipping into company funds.

In order to make sure you choose the right loan for your company, it is a good idea to talk to a specialist adviser. Our advisers have a great deal of experience in commercial loans and dealing with the companies that offer them. We could therefore save you time by finding the best deal available to suit your business in any circumstances. We can also make sure you are not going to be paying too much for your loan and ensure that you are fully aware of any risk involved. To talk to one of our experts, please complete a Mortgage Enquiry Form above and we will arrange for you to be contacted. Alternatively, you can call us on 0845 108 0505.