The commercial lending sector presents a wide scope of opportunity for you and your clients, and you could be missing out on an income stream by not adding this extra string to your bow. If you are not already involved in this market, our team of experts are here to guide you and your client through the entire process.

What is Commercial Finance?

Commercial finance covers a broad spectrum of lending areas including:

  • Owner occupied/trading businesses aimed at trading businesses looking to purchase or refinance their own premises
  • Commercial investment loans cover properties that are being purchased for rental return and capital gain
  • Residential investment loans cover properties that are being purchased for rental return and capital gain

Owner occupied/trading businesses

Commercial mortgages for owner occupied property are aimed at trading businesses looking to purchase or refinance their own premises. They can cover a variety of property types such as retail units, offices, factory units or any commercial premises used by the business. The maximum loan amount is normally 80%, but in some circumstances up to 100% may be possible. Interest rates start from around 2% over the base rate and lender fees from 1%. Repayment loans are typically over 20 years, but interest only facilities can be arranged. The funds can be borrowed in personal names, limited company, pension fund or trust.

Commercial investment

Commercial investment loans cover commercial or mixed-use properties that are being purchased for rental return and capital gain. Lending can be against any type of commercial property (offices, shops, industrial units etc). The maximum gearing is normally 75%, interest rates start from 2% over the base rate and lender's fees from 1%. Loans can be repayment or interest only, but the terms can vary quite significantly dependent upon the property type, tenant and rental lease details. The funds can be borrowed in personal names, limited company, pension fund or trust.

Residential investment

Residential investment loans cover larger or more complex residential properties that are being purchased for rental return and capital gain. Lending can be against any type of multi-unit residential property such as apartment blocks, HMO's, student lets or portfolios. The maximum gearing is 85%, interest rates start from 2% over the base rate and lender fees from 1%. Loans can be repayment or interest only, but the terms can vary quite significantly dependent upon the property type, rental income etc. The funds can be borrowed in personal names, limited company, pension fund or trust.

Asset/cash flow finance

Non property lending can be arranged on business assets such as vehicles, machinery, equipment etc. Terms vary according to the business and asset types. Cash flow finance is based on invoice / balance sheet items (see non property finance tabs for further information).

Types of finance covered within this division:

We can provide first charge lending on a wide variety of properties including:

  • Multiple units/apartment blocks (under one title)
  • Single freehold units
  • Flats above commercial premises
  • Retail units, industrial units and warehouses
  • Single offices/office blocks
  • Forecourts, petrol stations and car washes
  • Public houses, restaurants, hotels and guest houses
  • Care/nursing homes, child day care nurseries
  • Holiday and caravan parks

What is non-property commercial lending?

This area of the finance sector covers a broad spectrum of lending that covers the following three areas:

Asset Finance

Asset Finance is increasing used by individuals and businesses to finance such things as plant, equipment, machinery, vehicles, aircraft and marine vessels. It can also used for leasing and hire purchase agreements relating to the same assets.

As in the main mortgage market this finance is now available from a wide array of lenders from the main commercial banks, through the smaller niche banks and the private, non-bank lenders. This gives a great mix of pricing and loan structures and has made borrowing against assets has become more of a mainstream option for those looking to fuel growth.

Invoice Finance

Invoice Finance is cash flow finance based on prepayment against invoices, which unlocks the value tied up in the company’s debtor book. For many businesses this can be their largest asset and as the business grows so can the invoice finance facility avoiding cash flow bottlenecks.

Unsecured Business Loans

Unsecured business loans allow businesses to expand and can be used for a variety of reasons. The funding is available from a wide array of specialist lenders allowing many business types and sectors to be considered. The funding is usually quick and easy to arrange, particularly in comparison to commercial mortgages.

Criteria Overview
(property finance)

  • Market leading rates
  • Up to 100% LTV (with additional security)
  • Loans from £50k with no upper limit
  • Interest only options
  • Fixed and variable rates
  • Lending in England, Scotland, Wales and Northern Ireland
Typical Client Scenarios:
  • Your client is classed as an "unusual borrower" such as Ltd companies, LLPs, pension funds, charities and trusts.
  • Your clients are renting their business premises and the monthly mortgage payment works out to be less than the rent.
  • Your client wishes to borrow on an interest only basis.
  • Your client is struggling to finance their buy to let portfolio or block of apartments with traditional buy to let lenders.
TYPES OF FINANCE COVERED WITHIN THIS DIVISION:

We can provide first charge lending on a wide variety of properties including:

  • Multiple units/apartment blocks (under one title)
  • Single freehold units
  • Flats above commercial premises
  • Retail units, industrial units and warehouses
  • Single offices/office blocks
  • Forecourts, petrol stations and car washes
  • Public houses, restaurants, hotels and guest houses
  • Care/nursing homes, child day care nurseries
  • Holiday and caravan parks

criteria overview
(Non-Property Lending)

Asset Finance

  1. Market leading rates from 2% - 10%
  2. Loans typically from £25,000 with no upper limit
  3. Borrowing up to 100% of value of asset, with VAT deferral facilities available
  4. Ability to borrow against ‘second hand’ assets

Invoice Finance

  1. Market leading packages, clear and transparent pricing – rates can start as low as 3% plus service charges
  2. Sales driven finance providing real time access, up to 90% of the value of the sales
  3. If selling overseas and in local currencies, a separate current facility could be arranged to reduce exchange rate risk
  4. Ability of optional credit protection for peace of mind
  5. All industry sectors considered

Unsecured Business Loans

  1. Unsecured funding available from £500 to £350,000
  2. Quick and easy to arrange, and if successful, funds can be made available within 5 working days
  3. Rates available from 4.9%
  4. Available to businesses who have been trading as little as 9 months

Property Finance

The human touch is core to our proposition and we welcome your telephone call to discuss your client’s individual circumstances. You have two options in how we manage your client’s enquiry:

Option 1:

You can produce an instant quotation and submit your enquiry at any time by visiting:
www.easysource.co.uk

We are happy to take the name and number of your client and manage the entire process leaving you to concentrate on your core business. Please be assured that your client will remain “your client” and we will never cross sell to them.

Option 2:

If you prefer to retain control of the process, we will be happy to support you with guidance and all the documents required in order to facilitate your client’s finance.

Please contact our dedicated team of experts to discuss the administration fees applicable to your client’s application.

Contact our helpdesk today on 01277 500 900 (Option 4)

or

Email helpdesk@brightstarhub.co.uk


Non-Property Finance

Option 1:

We are happy to take the name and number of your client and manage the entire process leaving you to concentrate on your core business. Please be assured that your client will remain “your client” and we will never cross sell to them.

Option 2:

If you prefer to retain control of the process, we will be happy to support you with guidance and all the documents required in order to facilitate your client’s finance.

Please contact our dedicated team of experts to discuss the administration fees applicable to your client’s application.

Contact our helpdesk today: 01277 500 900, option 4

or

Email helpdesk@brightstarhub.co.uk

  

Contact our commercial finance helpdesk today:

01277 500 900

or email

commercial@brightstarhub.co.uk

Commercial Finance Made Easy