Commercial Mortgage

A Commercial Mortgage may be needed for many types of Business such as Hotels & Pubs, Bed & Breakfasts, Restaurant & Takeaway,Post Offices & Surgeries.

Why would you get a commercial mortgage for you business premises? Well firstly and most importantly it means you retain ownership of the property. Instead of raising funds by selling an interest in the property or the business to an investor you retain complete ownership of both.

The lender is only entitled to an interest return on its loan not a percentage of business ownership that a investor would expect. In addition to this the lender can only exercise the right to the property if you default on basement. You retain all the benefits of ownership in an asset that has the potential to appreciate in value.

A further benefit is that a business loan against your property gives you access to capital with minimal up front payments and the flexibility to design a repayment schedule that suits your needs. Financing your property purchase with a business loan will allow you to use your cash flow for other pressing needs. There are also tax advantages to such loans. Interest payments on your business loan are tax deductible and are made with pre-tax money. Purchases financed with profits, in contrast, are, made with after tax money.

Commercial Mortgages :