Finance Blog | Commercial Lending, Essex, London | first 4 Commercial

Understanding the Basics of a Commercial Mortgage

Business owners are often faced with the question of how to make that next step, to grow the company without stretching finances to the limit and putting jobs at risk as a result. Commercial financing provides a sensible, simple and flexible way of doing so.

Know Your History –  Before you apply for a commercial mortgage it is vital that you completely understand your business and its trading history. In order to be successful with an application for commercial credit your trading history will have to be viewed as solid by the lender.

Type of Business – Different types of businesses will be offered different terms for a commercial mortgage. A shop or office for example, might be offered a typical loan-to-value amount of 80%, whereas those individuals looking to lease out their property would most likely have a 75% loan-t0-value maximum.

Importance of Equity – The last thing you want to do is put your business at risk, so when speaking with a lender about the possibility of a commercial mortgage, be very accurate and clear about how much equity is available, before you commit.

First4Commercial has the experience and know-how to help you secure a commercial mortgage for your project. Give us a call today and we’ll be happy to guide you through the process and offer the best routes available for commercial financing to help you take that next step.


Things to Consider When Choosing a Business Location

As the owner of a company looking to move into business premises, there are a few considerations you should make prior to taking the leap into confirming the move. Let’s take a look at a few of the things you need to know before putting pen to paper on a new workplace.

Style of Business – Before committing to a work space, decide exactly what you want your business to look like? Do you think you need a traditional retail store, a small outdoor space, or could you work on the outskirts of a town?

Accessibility – Depending on the style of business you are running and your target market you might want to choose a location with heavy foot traffic potential. Wherever you land, good access will be required for staff and suppliers at least.

Competition – Within some industries it might be a better strategy to be close to your direct competitors, as it allows your customers to make an informed decision after making price comparisons. For other types of businesses, yours might benefit from the customer traffic that they generate, even if it is nothing to do with your goods and services.

First4Commercial has the financial assistance and expertise to help you secure funds to purchase the business premises of your choice. Once you have decided on the area you think will work best for your company, working fast is imperative to secure a property that suits your needs. To speak to a member of the First4Commercial team about how we can help you with commercial bridging finance, call us on 01277 620083.


The Advantages of Taking Out a Small Unsecured Loan

If you are in a tight financial spot and require some fast funding to plug the gap and enable a project to continue, securing a small, unsecured loan, could be the lifesaver you are looking for. First4Commercial understands how important a small bridging loan can be to people working on many types of projects.

Quick Answer and Supply – The first thing to mention is that a small unsecured loan through our team will provide you with an answer over a short period of time. A fast and simple application process could be the only thing that keeps your project afloat.

Flexible Repayment – We are always open to negotiating a repayment schedule that suits you where possible. As long as the small bridging loan is paid back within a 12-month period, there is flexibility to be gained within that framework, including the option to take the loan in stages through a set period, rather than in one lump sum.

Secure Exit – The majority of bridging loans are taken out in order to complete a sale or allow for refinancing prior to a large sum being available within a short amount of time, that can then be used to pay off the loan.

Contact the First4Commercial team today and our experts will be able to talk through your specific project and requirements for a small, unsecured loan that will help you keep moving forward. We understand how important it is to have access to flexible, fast and simple bridging loans.


Securing Development Funding for Your Commercial Project

For any person working on a development project, you’ll understand how vital it is to secure funds at various stages throughout the process. There are a number of stages where it can be crucial, from knocking an old structure down, building a property from the ground up, or constructing commercial and residential properties to house multiple occupants.

To secure financing there are a few stages and processes for a lender to consider, including the value of the land in question. Finance can be raised against the purchase cost or against the value of the land if there is already an owner. Once you have an agreement in place for development funding there will be different times at which funding can be released to assist your project.

Initial Costs – Any project will require funding to cover the building of the foundations and footings of the structure. Without this phase being completed, nothing else can go ahead.

Structure of Property – Funding can then be released to cover the cost of the basic structure of the building, creating an external frame.

Block-In – A different section of funding can then provide the materials to make the property weather-tight, installing windows, doors and a roof.

Electrics – The 1st Fix stage of a development includes the installation of all electrics and the plastering of the property.

2nd Fix – Once everything else is completed the finishing touches can be put on the property, including all decorating, as well as any external landscaping.

For more information about how you can secure development funding for your project, contact the experts at First4Commercial.


A Brief Guide to Commercial Bridging Loans

A bridging loan for commercial principles is funding secured to literally ‘bridge’ the gap that often occurs between the property transfer process beginning and the final transaction taking place. It ensures that the purchasing party does not miss out on a desired property. There are a couple of reasons that are traditionally behind the reason for commercial bridging loans being acquired by a business owner.

The first reason that bridging loans are required for many is if there is a chain of property involved. This is something that is often referred to in residential properties, but is equally valid when discussing the purchase of commercial property also. Another reason that commercial bridging loans are required is when new business premises are being funded by the sale of another building. The loan allows the purchase to go through whilst the funds are released from the sale of the other commercial property.

Without the assistance of commercial bridging loans for the purpose of securing work premises for a business, many transactions would fall through due to a lack of funding, or delays in property chains that so often take place.

If you are interested in talking to a team of dedicated bridging loans specialists, with a view to purchasing a commercial property, contact First4Commercial today. We have the skills, the know-how and the experience to help you secure funding for your dream commercial move. Call our team on 01277 620083 and we’ll be happy to offer you advice and guidance.


Becoming a Commercial Introducer with First4Commercial

At First4Commercial we are always looking at ways in which our clients can benefit from other services and how we can help a broader audience. If you believe that our services are perfect for your clients, why not speak to us about becoming one of our chosen commercial introducers?

A commercial introducer through First4Commercial will become a trusted member of the wider team, earning competitive commission rates and working within an environment that is beneficial not only for you and us, but also for the sake of your clients.

What are the benefits you can expect to experience as a First4Commercial introducer?

The first thing is that we really do offer a competitive structure of commission. Nothing is hidden and we’ll be clear with the payments you can expect to receive from us when you first sign an agreement with us. The service agreement we have developed allows you to focus on the aspects of your business that you are skilled at, allowing us to provide the expertise in areas that we understand. This can drastically reduce the workload for you and your clients, improving the all-round service.

As we mentioned, we have built a trusting environment that benefits all parties, and with that in mind we can guarantee that we’ll never cross-sell to your clients, as we want to work with you for the long-term. You can be involved with the process as much, or as little as you want to be and throughout our collaboration we believe in clear communication and fast decisions and quotes.

For more information about the benefits of becoming a commercial introducer with us, contact our friendly team, who can explain how your customers can benefit from our relationship.


Perfect Time to Remortgage with Hint of Interest Rate Rise

There have been suggestions from a member of the Bank of England’s rate-setting committee that there could be an increase in interest rates in the next few months, a change that would have an impact on those individuals seeking a mortgage, or negotiating a remortgage of their existing property.

What would a rise in interest rates mean for those who wish to invest in property?

It actually might mean that right now is the perfect time to invest in your property portfolio, before repayments become higher. Fixed-rate mortgages are at their most popular ever, mainly due to the fact that many of them are of a good value.

Use this uncertain time prior to any increase in interest rates to seek out either a remortgage of your property, or a new mortgage, taking on-board a fixed rate for a certain period of time, that will ensure you are unaffected by any increase in rates that comes in the next few months.

If you are looking for some advice and guidance in relation to investing in residential or commercial properties, First4Commercial have the experienced team to help you get to where you need to be. We have the knowledge and skills to provide bridging loans and commercial capital to get the job done, adding to your portfolio or providing finance as you remortgage a property.

For more information, contact our team today on 01277 620083 and we’ll be happy to help. The uncertainty of future interest rate increases by the Bank of England actually make today the best time to look into a new fixed-rate mortgage, our team can guide you through the entire process.


Securing Auction Loans for a New Property Purchase

In much the same way that a traditional bridging loan is used to help a buyer purchase a property that they need completed within a fast timeframe, a commercial auction loan helps to finalise a transaction in a scenario that has a number of nuances and strict criteria when compared to traditional property purchases.

One big difference between a traditional property transaction, and that of an auction purchase is that a deposit is required almost immediately after your bid has been accepted. That is why it is important to have in place your auction finance prior to entering the auction room.

In an auction room it is expected that the buyer be in a financial position to put down a 10% deposit immediately, with a strict timeframe for the remainder of the purchase funds to be provided, up to 20 days in most cases. It is during this period that commercial auction finance can be of great benefit should you be waiting on funds from other sources but wish to complete the transaction as quickly as possible.

If you are tempted to venture into the auction market to find a dream property, of either a residential or a commercial nature, do not go in under prepared. Contact the First4Commercial team today on 01277 620083 and we’ll be happy to talk through the entire auction process, what to look out for and expect, and how with our experience and skills you can be ready to fund purchase of a property at auction with the help of a bridging loan.


Investing in Buy-to-Let Properties – What to Look Out For

Mortgage rates and bridging finance continue to work together in such a way that purchasing property for the purposes of buy-to-let is still an attractive option for many an investor. If you are looking to get into the marketplace, and you have a deposit ready to go there are a few things that you should be looking out for that will help you secure a property that is perfect to let out.

Do Your Research – Of course this sounds straightforward but it is vital that you research all aspects of a potential purchase thoroughly. Work out your financial situation down to the penny, what can you afford for a deposit? And what would you want as a return on your investment? Look at all the risks and benefits of this approach and choose the location of the property so that there is a good balance between good value and a nice area to live.

Put Yourself in a Renters Mindset – This will help you to choose the area that you are purchasing a property in, as well as the type of property. If you were renting, what would you want the place to look like and where would the ideal location be?

Focus on Rental Yield – If you have researched effectively and thought like a tenant, you can focus on bringing in a good rental yield on the property. Even if your end goal is to sell the property, rent in the short-to-medium-term can help you to build some savings.

For more information about bridging finance to secure a property for buy-to-let purposes, contact First4Commercial. Our experienced team has access to a wide range of bridging finance lenders.


Using a Bridging Loan as a Short Term Financing Option

Bridging loans are an excellent way to secure short term financing options when you are faced with a situation where you are reliant on money coming in from another source at a slightly later date. First4Commercial has a bridging panel with a wide variety of experts, offering bridging loans to not only those with a clean credit history, but also to individuals who may have a poor debt history and an adverse credit score. In these circumstances where a gap needs to be bridged financially, we can really help all situations.

So what are the reasons someone might be looking for a short-term bridging finance?

The majority of bridging finance deals come about due to a need to complete a property acquisition, whether this is to develop the property, invest in it or to use as a buy-to-let. Bridging finance is perfect for developers and landlords looking for a rapid turnaround on a sale. It also helps those people who have already found a new property to move into, but are waiting for their current property to be sold and need short-term funds to do so.

If you would like to find out more about First4Commercial and how we can help you secure that much-needed short-term funding that will help you complete a transaction in terms of a property purchase at auction, or for a refurbishment project, call us today. Our team of bridging finance specialists are here to help, with a vast knowledge of the products and services that will assist you at your time of need.

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