Commercial Mortgage — Owner-Occupied

A long-term loan secured against a commercial property that the borrower’s own business occupies. Repaid monthly over 5 to 25 years. The lender assesses both the property value and the profitability of the business.

A trading business buying its own premises — an office, workshop, warehouse, or retail unit.

A joinery firm buys the unit it has rented for ten years. The lender advances 70% of the purchase price over 15 years, with monthly repayments replacing rent.

Commercial Mortgage — Investment

A long-term loan secured against a commercial property let to a third-party tenant. The lender assesses the rental income rather than the borrower’s own business profit.

A property investor buying an industrial unit, office suite, or retail premises to generate rental income.

An investor purchases a let warehouse for £400,000, borrowing 70% over 15 years. The tenant’s rent comfortably covers the monthly interest.

Semi-Commercial Mortgage

A mortgage on a mixed-use property — typically a commercial ground floor with residential accommodation above, such as a shop with a flat. The lender assesses both the commercial rent and the residential rental income.

Buying or refinancing a shop-with-flat above, an HMO above retail, or any property combining commercial and residential use.

An investor buys a high street takeaway with a two-bedroom flat above. The combined rental income from both elements supports the mortgage.

Bridging Finance

A short-term loan, typically 1 to 18 months, secured against property. It bridges a funding gap when a longer-term product cannot be arranged in time. The lender focuses on the property value and the borrower’s plan to repay — the exit strategy — rather than income or credit history.

Auction purchases, chain breaks, acquiring a property before a mortgage is in place, refurbishment before refinancing, or releasing equity quickly.

A client wins a property at auction with a 28-day completion deadline. A bridging loan completes in 12 days, giving time to arrange a commercial mortgage at leisure.

Refurbishment Finance

A bridging-type loan that also funds the cost of improving a property — from cosmetic decoration to structural conversion. The lender advances against both the current value and the projected value once works are complete.

Converting a property to a different use, improving a property to make it lettable or mortgageable, or funding an HMO conversion.

A landlord buys a vacant property needing a full refurbishment. The lender funds the purchase and releases money in stages as works are completed, then refinances to a buy-to-let mortgage on completion.

Development Finance

Structured lending for the construction of new residential or commercial property. Funds are released in stages as the build progresses, monitored by an independent surveyor. Interest accrues during the build and is repaid from sale proceeds or refinance at completion.

Ground-up new build, conversion of a commercial building to residential, or any significant construction scheme.

A developer builds six new houses on a plot. The lender advances up to 65% of the completed value in stages, and is repaid when the units sell.

Development Exit Finance

A short-term loan replacing a development finance facility once the build is complete. It gives the developer time to sell units at full market value rather than rushing to repay the development loan on its deadline.

A developer who has finished a scheme but not yet sold all units, and whose development facility is approaching maturity.

A developer completes 12 apartments with 8 sold. A development exit loan replaces the development facility, giving 12 months to sell the remaining 4 at the right price.

Auction Finance

A specialist fast-close bridging loan designed to meet the 28-day completion deadline that applies to unconditional auction purchases. Speed and certainty of delivery are the defining features.

Buying any property at auction where the buyer must complete within 28 days.

A client successfully bids £320,000 for a commercial unit at auction. The lender draws down within 10 days, well within the deadline.

Secured Business Loan

A fixed amount borrowed over an agreed term, repaid in regular monthly instalments, secured against the borrower’s property or business assets. The security allows the lender to offer lower rates than an unsecured loan.

Capital expenditure, business expansion, or debt consolidation where property or assets are available as security.

A manufacturer needs £250,000 to fund a factory extension. The lender takes a charge on the commercial property and lends over 5 years at a competitive rate.

Unsecured Business Loan

A fixed loan repaid over an agreed term with no charge taken over property or assets. The lender relies on the business’s trading history, cashflow, and credit profile. Rates are higher than secured equivalents but the process is faster and simpler.

Working capital, short-term cashflow support, or small capital needs for businesses without property security or those who prefer not to encumber assets.

A recruitment agency needs £80,000 to cover payroll while a large invoice clears. An unsecured loan is approved within 48 hours against the firm’s trading history.

Invoice Finance

A facility that advances up to 90% of the value of unpaid customer invoices within 24 hours of raising them. The remaining balance, less fees, is paid when the customer settles. Available as factoring (lender manages collections) or invoice discounting (client manages collections, often confidentially). The facility grows automatically as turnover grows.

B2B businesses with slow-paying customers, growing businesses whose turnover has outpaced their overdraft limit, or any business replacing an overdraft with a more scalable solution.

A logistics company invoices £80,000 per month on 60-day terms but pays drivers weekly. Invoice finance releases funds within 24 hours of each invoice, eliminating the cashflow gap.

Revolving Credit Facility

A committed credit line that can be drawn, repaid, and redrawn repeatedly within the facility limit and term. The borrower pays interest only on what is actually drawn. Unlike an overdraft, it is committed for a defined period and cannot be withdrawn by the lender at short notice.

Businesses with seasonal or variable cashflow that need a flexible, reliable working capital buffer.

A garden centre draws heavily on its facility in spring to fund stock purchase, then repays through the summer and autumn as sales income arrives — repeating the cycle each year.

Merchant Cash Advance

An advance against a business’s future card takings, repaid automatically by deducting a fixed percentage of daily card sales. There are no fixed monthly payments — repayment adjusts with revenue. Cost is expressed as a factor rate rather than an interest rate.

Hospitality, retail, and leisure businesses with consistent card terminal revenue that need quick access to funds and flexible repayment.

A restaurant processing £25,000 per month in card sales receives a £20,000 advance. A daily percentage of card takings is swept to the provider automatically until repaid.

Tax & VAT Loan

A short-term loan designed to spread a large HMRC liability — corporation tax, VAT, or PAYE — over monthly instalments rather than paying the full amount in one lump sum. Applications are straightforward and funds are typically available within a few days.

Businesses facing a significant tax bill who want to preserve cashflow by spreading the cost rather than depleting reserves.

A limited company faces a £60,000 corporation tax bill. A tax loan spreads the payment over nine monthly instalments, keeping cash available for trading and payroll.

Hire Purchase

The most common form of asset finance. The finance company buys the asset and the business repays it in fixed monthly instalments over an agreed term. Ownership transfers to the business at the end. The asset appears on the balance sheet and the business can claim capital allowances.

Acquiring vehicles, plant, machinery, or equipment where the business intends to own the asset at the end of the agreement.

A haulage firm acquires two new HGVs at £120,000 each. Hire purchase spreads the cost over 60 months, preserving cash reserves for the contracts the vehicles will service.

Finance Lease

The finance company buys the asset and leases it to the business for its useful life. The business uses the asset as if it owned it but legal title stays with the lender. At the end of the primary term the business can often continue using the asset for a nominal rental.

Businesses that want to fund an asset without owning it, or where claiming the full rental as a business expense is preferable to capital allowances.

A printing firm leases a high-specification digital press. The monthly rental is fully tax-deductible and the firm can upgrade to a newer model at the end of the lease term.

Operating Lease / Contract Hire

A rental arrangement for a fixed period, after which the asset is returned. The business takes no ownership risk and is not responsible for the asset’s residual value. Contract hire for vehicles often includes maintenance and servicing within the monthly cost.

Vehicle fleets, technology equipment, or any asset where the business wants predictable all-in costs and no disposal risk at the end.

A field service business operates a fleet of 20 vans on a 3-year contract hire. Fixed monthly costs cover servicing and tyres. At the end of three years the vans are returned and replaced.

Asset Refinance

A loan secured against an asset the business already owns and has paid for. The lender assesses the asset’s resale value and advances a percentage of it as cash. The business keeps using the asset and repays the loan over the agreed term.

Releasing working capital from owned equipment or vehicles; restructuring existing borrowing; bridging a short-term cash need without selling the asset.

A construction firm owns a fleet of plant equipment outright. Asset refinance releases £150,000 against the fleet’s value, providing working capital for a new contract without disposing of equipment needed on site.

Sale and Leaseback

The business sells an asset it owns — typically a commercial property or significant equipment — to a finance company or investor, and simultaneously leases it back. The business receives the full sale value in cash and continues using the asset, making regular lease payments going forward.

Releasing capital tied up in a property or equipment without disrupting operations; improving liquidity; funding growth or an acquisition without bank borrowing.

A manufacturer sells its factory to a property investor for £1.2 million and leases it back on a 15-year lease. The £1.2 million is reinvested in new machinery while the business continues operating from the same premises.