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We work with trusted brokers to give you access to a panel of leading lenders well placed to meet your needs at the lowest rates.
If you are looking to secure a loan against your business premises such as your office, factory or care home, Proper Finance can help you get the best rates and terms to suit your requirements.
You can apply for £1,000 to £10 million repaid over 1 to 25 years, with flexible repayment options and bad credit taken into consideration.
Click the “apply now” button below, and complete your online application in as little as 5 minutes. There are no fees for applying and successful applicants can often receive funds in a matter of days or weeks.
Can You Secure a Loan Against a Commercial Property?
Yes, you can secure a loan against business premises. When trying to get a secured loan for your business, you’ll have to offer up collateral. If you own your business premises, you can use this as collateral to secure the loan.
While unsecured loans can be a useful option to consider – especially for smaller businesses – you’ll typically find you can borrow more with a secured business loan. Therefore, if you need to borrow more than what an unsecured business loan is offering, and have the business premises to use as collateral, it might be worth considering this secured type of borrowing.
How Do Secured Loans Against Commercial Property Work?
Secured business loans work by the borrower securing a valuable asset (e.g., business premises), as collateral on their loan with a lender.
The amount the lender loans to the borrower will depend on the value of the asset being used as collateral on the loan, the needs of the business and their current circumstances.
What Types of Commercial Property Can I Use to Get a Secured Loan?
You are able to use any type of valuable commercial property to attain a secured loan. Some examples include:
- Offices
- Kitchens
- Factories
- Farm houses
- Nursing homes
- Hospitals
- Medical centres
- Care homes
- Land
- Hotels
- Garages
- Petrol stations
- Warehouses
- Shopping centres
- Sports facilities
- Retail stores
- Pubs
- Restaurants
In addition to business premises, some lenders may accept other, tangible business assets such as collateral on the loan – for example, vehicles, machinery, land and equipment. What will be accepted as collateral will depend on the lender and the loan you are requesting from them.
How Much Can I Borrow Against My Office Premises ?
Loans secured by office premises are usually higher value funding sources. Given the loan is secured against your office premises the loan presents less risk to the lender. With your office premises acting as a guarantee to the loan, the amount you can borrow is usually significantly larger vs unsecured loans.
The amount you can borrow will depend on the value of your office premises and how much of the premises you own. The more valuable the asset is the more you will be eligible to borrow. Most providers will lend up to 100% of the value of the premises that you own.
What is the Eligibility ? What Information Do I Need to Provide ?
The eligibility criteria for a loan secured against your premises varies depending on the lending provider.
Common requirements include:
- UK based limited company
- Equity ownership of a valuable business site
Secured business loans can be particularly useful to start-ups who have limited trading accounts. However, some providers will require more stringent criteria such as 12 months of business accounts or £120,000 annual turnover.
Do I Need to Own My Premises Outright to Get a Secured Loan?
No you don’t need to own your premises outright. As long as you have some equity in the property you are eligible for a secured loan against the premise.
The more equity you have in the premises the higher the amount you will be able to borrow. Lenders typically allow you to borrow up to 100% of the equity amount you own within the property. It’s not uncommon to secure up to £2 million on loans backed by your business premise.
You could have partial ownership of a highly valuable premise and still be able to secure decent loan capital.
What Can I Use Secured Loans Against My Commercial Property For?
The loan can be used for any business purpose. Some examples include:
- Paying staff
- Hiring staff
- Paying rent
- Marketing expenses
- Buying inventory
- Buying machinery
- Purchasing equipment
- Improving tech
- Improving software
- Purchasing a property
- Anything used to meet day to day business operations
- Paying invoices
The length of time you need the business loan for can vary depending on what it’s used for. If you’re experiencing a short-term issue with your cashflow, you’ll most likely be looking for a loan with a shorter loan term. If you’re looking for a longer term loan, some secured lenders offer generous repayment periods that could suit your borrowing needs.
How Long Can I Borrow for?
Typically a loan secured against your commercial property will have a duration of between five and twenty years. However, the exact length of the loan term will be dependent on the circumstances of the loan you’re apply for, e.g. – the amount you’d like to borrow, which business premises you’re wanting to use as collateral and the lender that’s offering the loan.
Securing the loan against your business premise presents less risk to the lender given they are secured by commercial assets. This makes them a great option for businesses who require medium term financing options as businesses can borrow larger amounts for longer time frames at lower rates compared to unsecured options.
Why Use Proper Finance for Secured Loans Against Commercial Property?
Proper Finance is a free comparison site that can help people find top secured business loans to meet their needs across the UK. We work with some of the best lenders throughout the UK, who are all regulated, meaning any loan you find through our site is safe and secure.
Working with over 100 fully FCA regulated and authorised lenders we are able to secure the best rates from award winning providers.
Our online application takes only a few minutes to complete, and once finished offers applicants an instant decision. No fees are incurred. Compare with Proper Finance today!