Finance conversations built around your plans.

Keep the full cost in view

Rates are only one part of a finance arrangement. The term, fees, security and repayment requirements also matter. We help keep those questions in the conversation so you can consider the implications before deciding how to proceed.

Commercial mortgages: property use and affordability

A commercial mortgage is borrowing secured against a commercial property. An owner-occupier may use it to buy premises for their own business. A commercial investor may instead be purchasing a property to let to another business. Those situations create different questions about the income supporting the borrowing and the property's suitability as security.

A lender may consider trading accounts, cash flow, existing borrowing and the deposit available. For an investment property, lease terms, rental income and the tenant can also be relevant. A property valuation is part of the assessment, but the security alone does not demonstrate that the repayments are affordable.

Prepare a clear explanation of the proposed use, ownership structure and source of repayments. Allow for purchase costs and the ongoing expense of owning the building as well as the loan. The finance needs to work with the business's other commitments, including the possibility of weaker trading or a period without rental income.

Bridging finance: planning the exit from the outset

Bridging finance is short-term borrowing intended to cover a temporary funding requirement. It may be considered where the timing of a property purchase does not fit a longer-term mortgage or where a property needs work before another funding arrangement is possible. It is not simply a faster version of a residential mortgage.

The exit is the planned way of repaying the loan, such as a sale or a separately approved refinance. Assess whether that plan is realistic within the term and what would happen if it is delayed. A hoped-for future mortgage is not a guaranteed repayment route. Changes in property values, lender criteria or the sale timetable can affect the outcome.

Interest may be paid during the term or retained or added under the facility's terms. Ask how this affects the amount available at the start and the balance due at the end. Arrangement fees, valuation and legal costs also matter. The full repayment figure and any extension conditions need to be understood before proceeding.

Development finance: costs, stages and contingencies

Development finance can support a construction or substantial refurbishment project. The assessment commonly looks at the site, planning position, proposed works, budget and the experience of the people delivering it. The expected value of the completed development is relevant, but it needs to be considered alongside the cost and practicality of reaching completion.

Funding may be released in stages as work progresses, subject to the lender's conditions and monitoring. This makes the timing of cash flow important. Establish what must be paid from your own funds, when a drawdown can be requested and what evidence is needed before it is released. An approved facility does not necessarily mean that all the money is available on day one.

A realistic proposal includes professional fees, finance costs and a contingency for unexpected work or delays. It also sets out how the facility will be repaid through sale or longer-term funding. We can discuss the information needed to explore the project and clarify the scope of our involvement before you commit to the next step.