Secured Loans

Secured Loans Against Your Commercial Property with MortgageTek

Securing a loan against your business premises, whether it’s an office, factory, or care home, is now hassle-free with MortgageTek. Explore the most competitive rates and terms tailored to your needs, ranging from £1,000 to £10 million. Benefit from flexible repayment options and special considerations for bad credit.

Can Your Business Premises Secure a Loan?

Absolutely. When seeking a secured loan for your business, collateral is crucial. Leverage your business premises as collateral to unlock the potential for a more substantial loan amount.

While unsecured loans suit smaller businesses, a secured business loan allows for larger borrowings. If your needs exceed what an unsecured loan offers and you have business premises as collateral, opting for this secured borrowing is worth considering.

Unsecured Commercial Loans: A Flexible Alternative

For smaller businesses lacking substantial collateral, unsecured commercial loans provide a flexible financing alternative. Although the loan amounts may be more modest than secured loans, they offer quick access to funds without the need for collateral.

Unveiling the Mechanics of Secured Loans

Secured business loans function by pledging a valuable asset, such as business premises, as collateral with a lender. The loan amount depends on the asset’s value, business requirements, and the borrower’s circumstances.

Understanding Eligible Commercial Properties

A diverse range of commercial properties qualifies for securing loans, including:

  • Offices
  • Kitchens
  • Factories
  • Farmhouses
  • Nursing homes
  • Hospitals
  • Medical centres
  • Care homes
  • Land
  • Hotels
  • Garages
  • Petrol stations
  • Warehouses
  • Shopping centres
  • Sports facilities
  • Retail stores
  • Pubs
  • Restaurants

Certain lenders may also consider other tangible business assets like vehicles, machinery, land, and equipment as collateral, depending on the loan type and lender policies.

Borrowing Against Office Premises: What to Expect

Loans secured against office premises often represent high-value funding opportunities. Given the reduced risk to the lender with the premises as collateral, borrowers can access significantly larger amounts compared to unsecured loans.

The borrowing amount is contingent on the premises’ value and the extent of ownership. Most providers extend loans up to 100% of the owned premises’ value.

Eligibility Criteria and Documentation

Eligibility criteria for premises-secured loans vary among providers but commonly include:

  • UK-based limited company
  • Equity ownership of a valuable business site

Start-ups with limited trading accounts find secured loans beneficial. Some providers may require additional criteria like 12 months of business accounts or a minimum annual turnover of £120,000.