Financing a commercial real estate purchase with a secured loan – SWNS


The majority of us would automatically assume that running a successful business would prove to be extremely beneficial when trying to raise capital, especially when applying for a commercial mortgage from a local bank branch. or a construction company.

However, since the financial crisis of 2007-2008 and the economic uncertainty that the Brexit vote introduced, the banking sector as a whole has become decidedly more cautious and temporarily less eager to lend money to small and growing businesses. who need their support. most.

While one can easily see why this is the case, it does nothing to help those who have been denied the funding they need.

A reliable way forward

Fortunately, banks and mortgage lenders aren’t the only lenders you can approach when trying to take your business to the next level of success. There are now many FCA Regulated Bridge Financing Brokers offering new, streamlined alternatives to conventional mortgage products for commercial real estate transactions. If you are a business owner or business owner looking for funds to purchase an industrial building or other type of commercial property, one of the less obvious options is a secured loan.

Secured loans – The main advantages

Although banks and building societies still play an important role in the day-to-day running of almost any type of business imaginable, a loan secured from a specialist broker is often the most logical and wise choice and , in some scenarios, the only option available.

Here are some of the main benefits that a secured loan can offer a growing business.

* Quick access to funds. Secured loans are quick to organize and in some cases the funds can be cleared and released in a matter of days or weeks. Even if you are looking to borrow a considerable amount, most lenders are happy to work quickly so that you can access the capital you need with the minimum of delay.

* Simplified application process. While most traditional business loan products can be an absolute nightmare to apply for, the secured loan application process is quite the opposite. As long as you have the necessary collateral to act as collateral, a loan decision in principle can be made in a quarter of an hour or less.

* High approval and acceptance rates. Most business loan providers require detailed proof of a company’s financial performance, and the lender often expects you to have a good credit rating while meeting additional borrowing criteria. With secured loans, you just need to prove that you can repay the loan using the equity in the assets that you put up as collateral.

* Increased flexibility. When a loan is secured by real estate, the lender will often be much more lenient and flexible in terms of repayment and loan terms.

* Low costs. As long as you shop around and always make sure you’re dealing with a reputable lender, a secured business loan can often be much more affordable than a conventional business loan or mortgage product.

With so many benefits available, secured business loans are often the most convenient, convenient, and financially sensible borrowing product. Of course, if you are considering applying for a secured loan as a way to raise capital to buy new premises, it is always a good idea to speak to an independent, FCA licensed and regulated advisor who is required by law to serve you. the best. interests .. –


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