Commercial mortgages, or bridging finance, are used to buy business premises or to buy an existing business in its entirety. Most lenders generally require a deposit of around 25%-40% of the total value and mortgage terms can run from one year, up to 40 years.
Securing commercial finance is based on the ability of your business to make the repayments. You will also find that lenders will assess your business before quoting you an interest rate. They generally look at past performance, the current position, and long-term future plans of the business. The interest rate you will be quoted may be based on these factors and may be higher if the underwriter identifies higher risk in the proposal. You may need to provide a detailed financial plan for the business, which demonstrates that you can make repayments, and a professional valuation will usually be required.