A commercial mortgage or business mortgage is simply a loan secured against a property used for business purposes. It provides access to capital, which is then normally used to finance the purchase of buildings or land for business purposes.
Commercial mortgages can be used for a variety of different business applications, the most popular being the purchase of a business premises, or expanding an existing business. They can also be used to make an investment into a commercial or residential venture or project.
Like most secured property loans, a commercial mortgage entitles the lender to have a legal claim over the property until the loan has been fully repaid. The commercial property or land can be repossessed and sold if the repayments are not made, in order to repay the outstanding mortgage balance.
Commercial mortgages can be used for a variety of different business applications, the most popular being the purchase of a business premises, or expanding an existing business. They can also be used to make an investment into a commercial or residential venture or project.
Like most secured property loans, a commercial mortgage entitles the lender to have a legal claim over the property until the loan has been fully repaid. The commercial property or land can be repossessed and sold if the repayments are not made, in order to repay the outstanding mortgage balance.
