Commercial Finance FAQs
Answers to some of our most commonly asked questions.
Which commercial finance products can UK Property Finance offer?
We can arrange the following types of finance:
- Leasehold purchasing
- Invoice finance
- Investment finance
- Trade finance
- Turnaround finance
- Venture finance
Is UK Property Finance a packager or a broker?
We currently offer both services and our dedicated team has several years of experience in every area of commercial finance expertise. As a whole of market packager and broker, we are able to source competitive commercial financing products from a diverse panel of lenders, including mainstream facilities and private investors. The lenders we use will consider funding any business proposition or development project based on its own merits, provided the borrower has sufficient equity to offer as security and the realistic ability to repay the loan.
Are you FCA authorized and regulated?
UK Property Finance is fully authorized and regulated by the FCA and able to offer both regulated and unregulated commercial finance products depending on your individual borrowing requirements. We will always act within your best interests and our advice is impartial as we are not tied to any specific lender.
How many lenders do you have access to?
Our core lending panel consists of almost 100 different facilities ranging from Sub Prime to Prime lenders and we can even provide finance from our own borrowing funds if this is within our / your best interests should you require a non-regulated business loan or commercial financing product that would otherwise be difficult to acquire.
How affordable are your interest rates?
The specific interest rates on any given borrowing product will ultimately depend on your circumstances at the time you apply for finance. In most instances, we should be able to offer a much better deal than the vast majority of high street lending facilities and you can always talk to one of our team members to find out more.
I can only provide partial accounts of my business activities – is this acceptable?
Yes, although it is usually in your best interest to provide as much information about your business as possible in order to secure the lowest borrowing rates.
What are the borrowing limits?
Depending on the security you can offer and your borrowing circumstances, we can normally provide funds from £25,000 to £10,000,000. However, the upper limit can be increased in certain instances.
What is asset refinancing?
When a business needs to release some of the equity from their assets, such as a vehicle or a valuable piece of machinery, this is known as asset refinancing. In most cases, you will be expected to own the assets used as collateral outright, although there are certain circumstances where you can still achieve business financing if there is a previous facility in place secured on the same assets – provided you use the capital raised to repay the original loan. If you are considering taking out a loan secured against your assets then you will need to make sure that those assets can be identified by means of a registration mark or serial number.
What is a buy to let mortgage?
A buy to let mortgage is a secured borrowing product aimed at investors and landlords in search of financing the acquisition of a property with a view to renting it out. buy to let products are different from traditional mortgages in that the lender will base the decision to lend, along with how much you can borrow, primarily on the amount of rental income you expect the property to generate.
What is a let to buy mortgage?
Not to be confused with buy to let finance, a let to buy mortgage is a specialist lending product that is designed for homeowners looking to move out of their property whilst refinancing it and transforming it into a source of rentable income. let to buy mortgages are quite popular at present as the housing market is currently quite depressed. By renting your existing home out whilst moving into another property, you can gain access to a reliable source of additional income until the current housing market picks up again, enabling you to get a better return on your initial investment in the long term.
What is the LIBOR interest rate?
The London Interbank Offered Rate, which is often abbreviated to LIBOR, is a useful measuring tool that is updated on a daily basis and published at the same time each day by the British Bankers Association in London. The purpose is LIBOR is to increase the interactivity between different banks by providing a fixed rate that they can base their borrowing and lending products on.
When one bank has more money than another and they are looking to gain a return on those additional or surplus funds, they use the LIBOR rate as a guideline for setting the interest rates on their own products. The London Interbank Offered Rate are currently provided for 10 different currencies and offer a valuable insight for a range of borrowing periods ranging from overnight to a year.
The rate itself is calculated using the average rate of interest offered by a variety of banks and lending facilities.
Will I qualify for a commercial mortgage?
Your eligibility for a commercial mortgage will be assessed on the basis of multiple factors. Examples of which include your current financial status, the amount you wish to borrow, your intentions for the money, the size of the deposit you are able to offer and your recent credit history.
How much will I have to repay each month?
Use our exclusive commercial mortgage calculator for an approximate overview of your monthly repayment obligations and the overall costs of your commercial mortgage or please contact UK Property Finance, anytime.
What deposit is needed on a commercial mortgage?
It depends entirely on the type of commercial mortgage and the lender you work with. As a rule of thumb, you will usually be asked to offer a deposit of at least 20% to 25%. It may be possible to secure a commercial mortgage with a smaller deposit but larger deposits typically pave the way for more competitive borrowing costs.
Can I qualify for a commercial mortgage with bad credit?
It is perfectly possible to qualify for a commercial mortgage with bad credit, just as long as you can demonstrate the strength of your financial position. If you have any questions or concerns regarding your credit status, contact a member of the team at UK Property Finance, anytime.
What if my previous commercial mortgage application was denied?
This isn’t necessarily an issue. Even if you have been declined on one or more occasions, there is a good chance we can find your ideal commercial mortgage from a panel of our specialist lenders. Call UK Property Finance anytime to arrange your obligation-free initial consultation with a member of the team.