Whether you are a business owner looking to buy your current premises or an investor looking to expand and diversify your property portfolio, the Commercial Mortgage market is perhaps the most complicated of all the debt markets. 

If you were to compare 10 different lenders, you would find 10 different sets of lending guidelines.  Some will only lend you 65% against the property while another might lend you 75%.  Some lenders have a preference for Industrial securities while others prefer Office and Retails.  Some will only structure your loan on a P & I basis over a relatively short term, while others are happy to provide you with an Interest Only loan and longer terms.  All have different servicing guidelines, some more favourable than others.

Over the years we have witnessed some very badly structured commercial loans and we are often able to quickly restructure existing arrangements to provide immediate cash flow and interest savings to our clients.

As Commercial mortgages are often established by business owners directly with the institutions that hold their banking account, residential mortgages and equipment finance loans, they are often over securitised by the lending institution.  This can often lead to difficulties in the future when attempting to raise further capital, particularly if the business is experiencing a downturn in trading conditions, which is usually the time that they require funding.  Ensuring that the minimum amount of security and guarantees are provided is an important issue that we pay considerable attention to when structuring and arranging loan facilities.

In this market, often the cheapest rate does not represent the best facility. There is a tiered level of lenders within this market.  The lenders appetite for risk increases as your proceed down the levels.  Your transaction may not be palatable for one lender while the next lender may be perfectly comfortable satisfying your requirements. 

There are also some excellent LoDoc Commercial Mortgage facilities now on offer to the borrower who has yet to finalise their accounts or is unable to attain funding.

Believe it or not, a borrower can be declined finance because they have actually been too profitable or they have grown too quickly. LoDoc Mortagages represent an excellent alternative, however there are some major differences between the products available.

We understand this market and the risk profiles of the various lenders and it is this understanding that will save you considerable time and money.

Contact us now to discuss your funding requirements