Commercial Loans in the UK are available in various forms. The most common type of commercial loans is the commercial Business Loan. Such loans can offer amounts ranging from £50,000 to somewhere around £50,000,000. Most residents in the UK with access to the World Wide Web can now freely choose different financial lenders and the type of commercial loan that best suits their financial status. Through the benefits offered by commercial loans, companies in the UK can now preserve their working capital.
Commercial loans are acquired by business entrepreneurs if they’re intending to expand their business and want to acquire additional land, capital, or equipment. In the UK, commercial loans are usually obtained to help finance all sorts of property. The loan can also be used to re-finance existing property or purchase new one. The type of property can be office buildings, day care centers, hotels, warehouses, health care facilities, industrial buildings, and retail centers.
Individuals residing in the UK are treated to an interesting palette of repayment options that come with commercial loans. The Equal Payment Mortgage is one type of repayment option which requires the respective borrower to repay the amount of the loan on a monthly or quarterly basis for a certain time period. Many lenders offer flexibility in terms of repayment options. They provide loans tailored to suit your needs and repayment options you are comfortable with. Such options may include the choice of fixed or variable rates and convenient repayment periods.
Types Of Commercial Loans
The list of commercial loans is exhaustive. Listed below are only a few types of commercial loans available.
Commercial Real Estate Loans
Commercial Real Estate Loans are obtained by major business companies to aid them in the construction of minor commercial structures. Some of the most common development structures include apartments, buildings, hospitals and shopping centers. Most commercial real estate loans come with affordable interest features.
A commercial mortgage is very flexible and affordable and provides one of the best commercial loans to buy buildings or property. The lender does get to have a legal claim over the property used as collateral until the loan has been paid off. There are many advantages of getting this type of loan. Many banks offer flexible terms tailored to suit your needs. You can select the repayment period you are comfortable with. You can borrow up to 80% of the purchase price and have insurance to cover payments in case a problem arises.
Income Property Loans
Income property loans are used to purchase or refinance a mortgage on income producing properties such as apartment buildings, commercial retail outlets, or office buildings. These loans have many advantaged including fixed and variable rates.
Seasonal Commercial Loans
These loans are needed by companies to cover the extra seasonal costs such as those during the holiday season because of high demand. Such loans may be needed to maintain inventory and satisfy increased demand during holidays. Getting such loans ensures that the companies have ample resources leading to sales that can contribute towards overall profit.