| A
commercial mortgage or commercial remortgage is a business loan which
is secured against a commercial property. Commercial
mortgages are often used to buy business premises, such as offices,
shops, restaurants, or pubs. But they can also be
used to buy other business assets such as plant or machinery. As
well as being a useful way of financing the purchase of business
premises for a new business, commercial mortgages can also be an
excellent way of funding the expansion of an existing business. A
commercial mortgage can also be used to fund investment in land or
property which will be used for commercial purposes. A
commercial mortgage can be used to buy most types of commercial
buildings, such as shops and offices, for both new and existing
businesses. The interest rates on commercial
mortgages tend to be lower than the interest rates on unsecured
business loans and the repayment terms are usually longer. This makes
them useful for all sorts of business financing requirements. What
About a Remortgage? If you already have a
commercial mortgage on your company's business premises, you might find
you could benefit from remortgaging. A commercial
remortgage allows you to unlock some of the equity that is currently
tied up in your commercial property. It could also be a chance to
switch to a more competitive, cheaper mortgage, especially if your or
your company's credit rating and business history have improved since
you took out your original commercial mortgage. The
money you free up through a commercial remortgage can be used for all
sorts of things for your business. For example, you could purchase
additional stock, or invest in new machinery or other fixed assets such
as vehicles. Another use for the extra money can be to pay off
outstanding bills, or clear other borrowings such as the company's
overdraft. Here are some typical uses for a
commercial mortgage or remortgage: - Borrowing
money to buy a shop
- Raising finance to purchase
an office building
- Buying a pub
 - Financing the purchase of
a restaurant
- Buying a hotel
- Buying
a house to convert to a Bed & Breakfast (B&B)
- Raising
finance to buy an existing business
- Clearing a
business overdraft
- Improving business cashflow
- Buying
new plant or machinery
- Financing the purchase of
company vans and other vehicles
- Borrowing money
to buy extra stock for your business
- Funding the
expansion or refurbishment of your offices
- Borrowing
money to pay for training
- Buying land for
business purposes
Further
information on commercial mortgages and business loans can be found at
the Online Commercial Mortgages website. Copyright
2004 David Miles. You are welcome to reproduce this article on your
website, so long as it is published "as is" (unedited) and with the
author's bio paragraph (resource box) and copyright information
included. In addition, all links to external websites must be left in
place. David Miles is the editor of a number of
personal finance and business websites including The
Cash Clinic and Employee
Contracts. David
Miles
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