Commercial Loans in Surrey

Are you planning to buy a commercial property? When business owners are willing to buy a property for commercial purposes, they take out commercial mortgages. There are many types of commercial loans or mortgages available to choose from, including buy-to-let mortgages, which are acquired with an intention to renting out a property and earning profits. Not only this, commercial mortgages are an ideal choice if you are planning to make property improvements or commercial renovations.

In this blog, we’ll discuss how to apply a commercial loan, its pros and cons.

How to obtain a commercial loan?

Since commercial loans are customized mortgage solutions that help businesses reach their objectives or buy property, they are a bit different than residential mortgages. Regardless of your business structure, i.e. sole proprietorship, limited company, LLP, trust, or partnership, banks, lenders, and many financial organizations readily provide you with easy commercial loans in Surrey.

Pros & Cons of Commercial Loans

Check out the benefits and drawbacks listed below that can help you make an informed choice, in case you are planning to apply a commercial mortgage but are unsure about it.

Pros

  • Simple access to finance: These mortgages are an excellent way to obtain capital, regardless of whether you want to purchase a business property for investment or expansion.
  • Greater financial stability: Owning a secure property can provide you with greater stability and long-term value growth, especially in the recent market trends of rising rental rates.
  • Get tax advantages: You can save on taxes by getting approved for a commercial loan in Surrey as the interest payments and costs associated with the property are deductible.
  • Flexible funding alternatives: Many lenders and commercial mortgage brokers make it simple to examine your options among the several commercial mortgage choices available.
  • Helps build equity: Develop equity by increasing the value of your holdings and use it as equity leverage when applying for loans or making more investments.

Cons

  • High interest rates: Compared to residential mortgages, commercial mortgage interest rates are higher.
  • Strict eligibility requirements: Before approving a business for a commercial mortgage, lenders thoroughly assess the financial status of the business, and may ask for large down payments.
  • Market volatility: The state of the economy, changes in the mortgage market, and risks specific to your business or industry can affect your chances of getting approved.
  • Repayment penalty: In some case, lenders may impose penalties for early repayment of mortgage payments.

Is a commercial loan the best option for your company?

Interest rates on commercial mortgages are lower than those on other business loans. In case, you need to relocate or shut down your company, you can still handle the monthly instalments by selling or renting out your property. 

If you are planning to apply for commercial loans in Surrey, rely on none other than Satbir Bhullar, your trusted mortgage broker. We specialize in residential, commercial, and construction mortgages and help our clients secure an easy loan approval at a low interest rate.

Getting a commercial mortgage can be an exciting move. However, it’s also a big decision that you need to think about carefully. So, it’s always wise to make sure you are aware of the pros and cons.

Are you looking into taking out mortgage or commercial loans Surrey? If so, you’ve likely come across the term “mortgage in principle” or “mortgage agreement in principle.” But what exactly does it mean, and why is it an important step in the loan process?

In this blog post, we’ll explain what a mortgage in principle is, and why they matter. We’ll also have a look at how they can benefit you when getting a loan. Also, we will discuss the advantages and disadvantages or commercial loans.

 

Let us have a look!

Understanding The Mortgage in Principle

A mortgage in principle is a written estimate or statement from a lender that shows how much money they are willing to lend you. It can be used to help you understand how much you may be able to borrow for your plans.

It’s not a formal loan offer but a provisional agreement based on your finances. A mortgage in principle is based on an assessment of your financial situation. This will examine your income, expenses, credit history, and any existing debts.

 

Why is Mortgage Principle Important?

Getting a mortgage in principle gives you a realistic budget to work with. For example, buying a house helps guide you towards properties within your price range. This can help you avoid wasting time on houses that are too expensive.

Knowing your borrowing limit allows you to plan your budget. For example, if you use the loan for home renovations, you will know how much money you can spend on labour, materials etc. By getting a mortgage in principle, you’ll already have much of the required paperwork. This could reduce the time it takes to secure an offer.

A mortgage in principle generally provides you with peace of mind, knowing that you have a lender’s initial vote of confidence in your ability to secure financing. It allows you to begin your plans with assurance and reduces the uncertainty of obtaining commercial loans Surrey.

 

How To Get The Process Done?

  • Choose a lender, bank, or mortgage broker 

Research different mortgage lenders, banks, and brokers, and compare their offerings to decide where to apply. Once you have chosen, you should contact the lender, bank or a mortgage broker in Surrey to express your interest and ask for a mortgage in principle.

  • Provide information 

You will need to provide details about your income, expenses, and credit history. Be prepared to share these details honestly, as it forms the basis of your mortgage in principle.

  • Submit application

Once you have provided the required information, you can submit your application for a mortgage in principle. The lender, bank, or broker will then run a credit check to ensure you are eligible for a loan.

  • Receive your mortgage in principle 

Once approved, you will get a document from the lender outlining the amount they are willing to lend you and the terms and conditions. This might typically be valid for around 60 to 90 days.

 

Get Commercial Loans in Surrey From Satbir Bhullar

Whether you requie commercial loans or are looking for a reliable mortgage broker in Surrey, we’ve got you covered! Satbir Bhullar is a one-stop center that caters to all your mortgage requirements under one roof. We’re renowned for specialising in commercial mortgages, refinancing, and renewals. Backed by years of experience and a track record of successful mortgage approvals, we’ll deliver the best solutions as per your requirements. 

Get in touch with us and schedule a consultation to get the most of your deals!

Every entrepreneur knows the feeling – that exhilarating rush of running your own business, coupled with the constant worry about cash flow. You have brilliant ideas for growth but lack the upfront capital to make them happen. Maybe you need to invest in new equipment, expand your inventory, or seize a time-sensitive business opportunity. 

This is where commercial loans come in, offering a powerful financial tool to bridge the gap and empower your business to thrive.

Here, we’ll explore some common cash flow roadblocks and how commercial loans in Surrey can help you grow them with confidence.

 

Understanding Your Business Cash Flow Challenges

Imagine your business cash flow as a river. Ideally, it should flow steadily, covering your expenses and leaving some room for investment. However, in reality, this river can experience periods of drought (low cash flow) and floods (excess cash).

These challenges can be stressful and hinder your business growth. But fear not! Commercial loans can be the financial life raft you need to overcome these obstacles and navigate your cash flow river smoothly.

 

How To Choose The Correct Commercial Loan?

A commercial loan is essentially a financial product offered by lenders like banks or credit unions specifically for businesses. These loans provide a lump sum of money that you can use for various business purposes, depending on your needs. 

Now that you understand how commercial loans can address various cash flow challenges, let’s explore some key factors to consider when choosing the right loan for your business:

Loan Purpose

The first step is to identify the specific purpose of the loan. Are you looking to invest in growth initiatives, upgrade equipment, manage uneven cash flow, or seize a strategic opportunity? Understanding your needs will help you choose the most suitable loan type.

Loan Amount

Determine the exact amount of money you need to achieve your business goals. Don’t over borrow, as you’ll be responsible for repaying the loan with interest.

Repayment Terms

Commercial loans come with varying repayment terms, typically ranging from a few months to several years. Consider your business’s cash flow and choose a repayment schedule that’s comfortable and sustainable.

Interest Rates

Commercial loans can have fixed or variable interest rates. Fixed rates offer predictability, while variable rates may fluctuate based on market conditions. Shop around to compare interest rates and choose the option that best suits your financial situation.

Loan Security

Some commercial loans require collateral, such as property or equipment, to secure the loan. This can potentially lower your interest rate, but also puts your assets at risk if you default on the loan. By carefully considering these factors, you can make informed decisions when choosing a commercial loan. Remember, a commercial loan is a powerful tool, but it’s important to use it strategically to achieve your business goals without creating unnecessary financial burdens.

Conclusion 

Consulting with a qualified mortgage consultant or loan advisor can help you handle the complexities of commercial loans and choose the best option for your business. Satbir Bhullar is a trusted commercial Surrey mortgage broker who understands the unique challenges faced by businesses. He has years of experience in the financial industry, ensuring a deep understanding of commercial lending options and how to tailor them to your specific business needs.