The Changing Face Of Commercial Mortgages In The Uk


by John Foot - Date: 2007-01-04 - Word Count: 623 Share This!

Commercial mortgages in the UK have traditionally been somewhat of a mysterious subject and yet there are many avenues to explore, if you know where to look. The main High Street banks are usually the first port of call for most prospective entrepreneurs, but in most cases, these lenders have an initial comfort factor of about half of what will be requested from them. Just imagine how soul-destroying this can be after the third or fourth interview with a commercial lending manager! So where else can you look for a commercial mortgage?

The answer lies in specialist independent Broker sector. You may have the best product, or idea, but in most circumstances, enthusiasm alone will not get what you want. A good Broker will be able to take your requirements and present them to a lender in such a way that a lender will be pleased to offer good terms on the funds required.

A good Broker will also take into account the need for sufficient working capital, banking facilities, and commercial credit, all of which play an important part in the set-up of a new business venture.

The whole process is described as a 'structured' business deal. This takes into account every aspect of business funding requirements, where the commercial mortgage is the cornerstone, underpinned by the peripheral banking and credit facilities.

Cash-flow also plays a significant part in the success of any business and a good Broker will also have specialist knowledge of Invoice Discounting and Asset Finance, as well as all the following facilities:

Venture Capital
Business Consultancy
Franchising
Block Discounting
Employment Law Consultancy

All the above are themselves, specialist subjects and will ideally be handled by an expert in each field. Sooner or later, the growing business will reach a stage where one, or more, of these facilities will almost certainly be required.

Venture Capital is a term given to the funding provided to small to medium enterprises (SME's) where conventional funding channels are not available. Companies providing this type of finance are referred to as 'Business Angels'. Sometimes, there is a very fine line between success, or failure and therefore, the right finance, at the right time and at the right price is often the difference.

Business Consultancy can be a vital part of any business, as good opportunities can often be missed as a result of being too involved in the day-to-day running of the company. A Business Consultant will be able to take a general overview of the business and lay down a strategy to achieve goals and targets.

Franchising is often a good way to start in business, as a successful business model will have been produced and demonstrated by the founder company (the franchisor). The other facet of franchising is the ability to sell your own successful business model to a willing purchaser (the franchisee). These franchise sales can often produce significant tranches of funds, which even supercede the income from the original business.

Block Discounting can be used for companies who lease, or rent equipment and vehicles It is also suitable for smaller finance companies who underwrite their own agreements. Finance can be raised by selling a block of agreements to a willing funder, who returns ownership to the originating business upon repayment.

Employment Law is rapidly becoming an issue for every business to embrace. Its effects are far reaching and knowledge of its content are rapidly becoming an essential part in the development of any business. A good Broker will be able to designate a specialist in this field who can advise on Contracts of Employment, or whether a Pension scheme needs to be arranged, and many other issues.

The weight of evidence is therefore clear - a specialist independent commercial Broker has an essential part to play in any successful business, large or small.


Related Tags: commercial mortgages, business finance, commercial funding, commercial property mortgage, commercai

To find out more about John's approach to the subject please visit Commercial Mortgage Broker, 85percent.co.uk and Bad Credit Secured Loans.

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