Commercial
Finance Can Be Complex and Expensive Therefore
Getting the Right Deal is Essential, Let an
Experienced Professional Broker Guide You
to Source the Best Product that is Based on
Your Individual Circumstances
In
the 1990's commercial loans and mortgage finance
was generally only obtainable via high street
lenders and banks with the exception of a
handful of niche lenders which created a UK
business market that was quite inflexible
with strict criteria. In 2002 a new commercial
mortgage lender offered new underwriting criteria
which would cater for not producing accounts
and limited paperwork requirements or self
certification. This freed up an opportunity
to many small businesses to finance business
growth who previously would probably have
not been able to lend through traditional
banks.
Since
then other new lenders have sprung up in the
UK commercial mortgage market that have offered
further flexible and more open minded lending
criteria. For example excepting in some cases
poor credit history.
Residential
lending rates are generally set in advance
however commercial lending rates can vary
according to the individual circumstances
of the business and business owner. Commercial
lending is generally more complex and involved
than standard residential lending.
Looking at payment history, experience, accounts,
the business plan and projections. Generally
speaking the better and more healthy a business
has been and potentially could be will encourage
a lower rate as it will reduce the risk to
the the lender. Remember generally only one
in five businesses will still be successfully
trading after five years.
However
since the credit crunch many lenders have
withdrawn from the market or existing lenders
have tightened their underwriting criteria.
Deals now have much harder conditions to meet
in order to borrow. Yo may wish to consider
unsecured
business loan.
