Types of Property Finance
- Commercial Mortgages
- Development Finance
- Bridging Finance
A commercial mortgage is a type of loan provided by a lender to a borrower that is secured by a legal charge over commercial property. Mortgages are attractive products which can be used to achieve a wide range of objectives such as contributing towards the purchase of commercial property, releasing equity to grow or invest in your business, refinancing to benefit from a lower interest rate or monthly repayments and consolidating existing debts into one manageable monthly payment.
Development finance is a term for loans used to support the costs associated with a residential or commercial development project. Unlike long-term property mortgages, development financing is typically short-term, with lifecycles in the range of 6-24 months. Loans can be used to buy land and pay for construction costs, and they are suitable for ground-up new builds, conversions or refurbishments of existing properties.
A bridge loan can come in handy if you’re buying a property but are still waiting to receive the cash for the sale of an existing property. In this instance, you could use the loan to cover the costs of purchasing the new place. Short-term financing can also be used if the bridging loan falls through.
What is property finance?
Property finance loans are typically short-term loans and are great for giving businesses quick cash access to develop and grow. Property finance loans often cover the costs of converting an existing property or developing your business. It is normally advanced as a loan, or alternatively secured against your current business property or land assets.
Why is property finance important?
Property finance is a great choice for lots of business owners because it is considered one of the most straightforward funding options available. This kind of finance is quite similar to a secured business loan.
When business owners opt for property finance, it means they secure the loan against their residential or business property. Property finance is a plausible option for businesses that have strong potential to grow and develop but don’t have a huge amount of money to spend on achieving their goals.
What are the different types of property finance?
There are a few different types of property finance and the option you choose will depend on your business, its size, your existing properties and your business goals.
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Highgrove, 32 Franklin Way, Barrow upon Humber, North Lincolnshire, DN19 7BJ
Telephone: 01522 420499
HAE Commercial Finance is a trading style of ECS Management Services Limited. ECS Management Services Limited, trading as ECS Group, are directly authorised and regulated by the Financial Conduct Authority (Registration Number 777473).
ECS Group are a commercial finance brokerage and not a lender. All quotations are subject to formal credit approval.