Commercial property investments range from offices, industrial properties, warehouses or even retail spaces. Using a commercial loan is a way your clients can raise finance to purchase a property for business use.

There are two different types of commercial finance, owner occupied and commercial investment. Owner occupied loans are used to buy a property that will be used as a trading premises, whereas commercial investment loans are used to purchase a property that will be let out.

When taking out any loan, particularly for a business purpose, it is important to weigh up the pros and cons and assess whether it is the most appropriate option, given your clients’ circumstances. Read on as we highlight the key benefits and drawbacks of commercial finance.

Pros

• Access funding whilst keeping overheads low due to low interest rates

• If renting the property, it could cover the monthly loan payments

• Potential capital increase if the property value increases

• Long-term payment plans available

Cons

• Failure to qualify for an unsecured loan, means securing against an asset

• There are some fees attached e.g. valuation fees, legal fees, arrangement fees

• Lengthy financial and legal checks

• Exhaustive application processes

There are a range of pros associated with commercial finance for businesses and whilst there are a few cons, Crystal Specialist Finance are here to flip those negatives into positives. We pride ourselves on the speed, service and flexibility we offer and will simplify the application process and lengthy financial and legal checks. Where we can, we also carry out desktop valuations to speed things up.

In the specialist finance realm, securing a commercial loan doesn’t have to be a minefield. Whether your clients are first time business owners or are simply looking to purchase a property to rent out but have adverse credit, Crystal Specialist Finance will help to find a solution.

Call our New Business Advisers on 01827 337710 or enquire through our CrystalHUB for a quote today.

Find out more about commercial finance.