A ten step guide to a commercial loan: Step 8

A ten step guide to a commercial loan: Step 8



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With Lancashire Mortgage Corporation

Each week we bring you a step by step guide to setting up and completing a commercial loan

This week it's step 8:

Second charge commercial loans

In this economic climate, many mortgage intermediaries are finding that clients are struggling to gain access to additional funding for their business.  Major Banks have had to squeeze their lending criteria making commercial funding hard to come by.

As a result, brokers need to become aware of the second charge commercial loan options out there with specialist lenders.  A second charge commercial loan allows your clients to stay with their primary lender, who may not be able to offer further finance, and take out an additional loan with a specialist lender as opposed to remortgaging (which could prove costly and time consuming).

 This is a much more effective way of raising finance and offers clients a range of flexible repayment options with quick decisions, and allows funds to be made available for the realisation of business goals.

Second charge loans can be secured on many types of commercial property or land, and as the broker market is an ever-changing landscape, by offering a range of services, including second charge commercial loans, it will ensure an intermediary supports all client needs and remains in a strong market position. As such, they should play an important part in all brokers' offerings, to give clients the flexibility and support they need in what remains a difficult trading climate.


 

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