Property Finance

Raising company finance through property is one of the most popular ways for a business to grow, and expand.

We can assist a business in raising company finance in a number of ways:

• Commercial Mortgage
• Bridging Loans
• Second Charge Lending
• Development Loans

Raising Company Finance With Commercial Mortgage

Commercial mortgage lending is one of the most popular ways of raising company finance. This can provide funding to a maximum of 80% of a property's values. In certain cases, higher advances may be offered but additional security would need to be provided.

Repayment terms in the main tend to be between 10 and 20 years.

Pricing can be very fine for good quality lending covenants but can move out to between 3%-5% over base for those disadvantaged businesses who may need to access secondary funders.

Raising Company Finance With Bridging Loans

Raising company finance by bridging loans by definitions is a short term solution and unlikely to exceed 12 months.

Financiers will as a guide keep within 75% loan to value (based on a 180 day sale valuation) after taking into account any advance they make and that of any other existing chargeholders.

Security will be taken over the property asset and other security may be requested depending on the overall risks of the transaction.

Raising Company Finance With Second Charge Lending

Effectively such lending amounts to a top up facility on another property lender. Such facilities tend to cut off at an overall 75% advance on the property.

The approval of a prior charge holder over the property will be required but that is rarely refused when the cashflow benefits for a business are understood.

This form of lending is not considered long-term and exit routes will need to be understood prior to any advances.

Raising Company Finance With Development Loans

Development loans can be secured for up to 100% of land and build costs where there is a clearly defined and realistic exit within typically 18 months.

As a guide a 70% final loan to value would be sought on exit either through property disposals or through a refinance to an alternative financier.

To find out how MCR Finance Brokers can assist you with raising company finance, call one of our advisers today on 0871 873 2939 for a no-obligation chat.