What to Look for in a Business Mortgage Provider

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Business man

Much like when you’re buying a home, you’ll want to make sure that your business’ location is the right fit for you and your needs. Everything from the size, area, potential and more need to tick all your boxes, as a) you’ll be spending a lot of your time there and b) it needs to be something that benefits your business.

In the same vein though, unless you’re fortunate enough to purchase a commercial property outright, you need to have a mortgage in place that’s also the best choice for your company.

However, with so many options available it might seem daunting to know what exactly the right option is for you. Well, in this post you can find some helpful tips to help inform your decision, you should consider:

What Can They Offer Businesses?

Firstly, when you’ve got a list of potential providers you need to think about what they can offer to businesses – much like with a mortgage on a property.

Ask them about different things like:

  • What terms they can offer on a commercial mortgage
  • How flexible they can be with payment schedules (this is particularly useful for contractors)
  • Whether or not they can offer fixed-rate or variable mortgages for business

What Information Do You Need?

As you would expect, a provider will be keen to make sure you can afford this mortgage, so expect to be asked for a number of documents and pieces of information like:

  • Your business’ accounts
  • Your financial history
  • Your objectives and targets and growth predications
  • You company assets

This should be something the provider wants to see and it shows they are established and professional, alarm bells should be ringing if this isn’t the case.

Read  The Four P's: What Businesses Rely On For Success

Any Hidden Costs?

The provider should be upfront with all costs. If you’re in any doubt you can ask about whether or not the business mortgages they offer have any additional fees you may need to pay – e.g. legal fees, arrangement fees.

Any Additional Options for Different Sectors?

The type of business you have can also be a factor in this – say if for instance you’re a contractor, the provider might not be keen to offer you a mortgage as you’re not in a fixed location. If you shop around though, you can find there are specialist lenders like Saffron Building Society who can cater to the needs of different businesses.

So, make sure you consider some of the above with your mortgage endeavours for your business and get the right option for your circumstances.

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Sanskar Shrivastava is the founder of international students' journal, The World Reporter. Passionate about dynamic occurrence in geopolitics, Sanskar has been studying and analyzing geopolitcal events from early life. At present, Sanskar is a student at the Russian Centre of Science and Culture and will be moving to Duke University.