by Kate | Oct 31, 2025
A commercial mortgage is a secured loan used to purchase or refinance a property that will be used for business purposes. A business property could be an office building, a shop, a warehouse, a factory, or even a mixed-use property.
Because these loans often involve large sums of money and properties with more complex values than residential homes, lenders are careful to assess both the borrower and the asset before agreeing to lend. The application process is more detailed than for a standard residential mortgage.
Requirements for a commercial mortgage
Business and financial information
Lenders want to understand the nature of your business and how it operates. The stronger and more stable your business appears, the better your chances of securing a commercial mortgage on favourable terms.
- Business history and type: Some industries are seen as riskier than others. For example, hospitality and start-up retail businesses can be regarded as more volatile, while established professional services or manufacturing tend to be more stable. A company with a long trading history is generally viewed more favourably than one that has been operating for only a short period.
- Financial statements: Ideally, lenders would like to see at least two to three years of profit and loss accounts and balance sheets. These assist the lender in assessing profitability, debt levels, and overall financial stability. A steady or increasing profit margin is a positive indicator. However, it is still possible to obtain a commercial mortgage with only limited financial information.
- Tax returns: These are used to verify the income figures you provide in your financial statements and to ensure there are no discrepancies. They also help lenders confirm the business’s tax compliance.
Income projections: Especially for newer businesses or properties that will generate rental income, lenders might request forecasts of future revenue. These forecasts should be realistic and supported by market research, existing contracts, or signed lease agreements.
- Business experience: If you or your management team have a solid track record in your sector, lenders may have greater confidence in your ability to operate successfully and manage the property profitably. However, we can and do assist new entrants secure finance.
Creditworthiness
Even with a strong business case, lenders need reassurance that you have a history of meeting financial commitments. They will usually look at both the business’s credit profile and the personal credit record of the directors or owners.
- Credit history: A record of missed payments, defaults, or County Court Judgments (CCJs) can lower your chances of approval. Lenders seek a history that demonstrates responsible borrowing and punctual repayments.
- Credit score: Higher scores typically lead to better interest rates and terms. Although there’s no universal threshold, a strong score can lower perceived risk and encourage lenders to offer more favourable conditions.
Collateral
A commercial mortgage is a secured loan, meaning the lender can take possession of the property if the loan isn’t repaid. The property itself forms the main security for the loan.
- Property value: Lenders will organise an independent valuation to establish the property’s market value. This valuation takes into account location, size, condition, and local demand. If you are purchasing an investment property, the potential rental yield may also be included in the valuation.
- Loan-to-value (LTV) ratio: Most commercial lenders prefer an LTV of 70–75% or lower, meaning you may need a deposit of 25–30% or more. Lower LTV ratios are less risky for the lender and can result in better interest rates for you.
Legal and regulatory compliance
Lenders must verify that both the business and the property comply with all applicable legal and regulatory requirements before proceeding with a loan.
- Legal standing: The lender will check that your business is properly registered, up to date with Companies House filings, and free from significant legal disputes.
- Licences and permits: Certain types of commercial property require specific licences (e.g., a premises licence for a pub). Lenders may request proof that these are in place or can be obtained.
- Regulatory compliance: This includes health and safety regulations, environmental standards, and planning permissions. If the property is non-compliant, lenders may refuse the loan or require corrective work before completion.
Other considerations
While the above are the core requirements, lenders may also take into account:
- Deposit size: A larger deposit lowers the lender’s risk and can enhance the terms you receive.
- Personal guarantees: In some cases, particularly with small businesses or start-ups, lenders may require personal guarantees from directors.
- Repayment method: Some lenders may offer repayment mortgages (capital and interest) or interest-only options, depending on your circumstances.
- Exit strategy: If you’re applying for an interest-only or short-term commercial mortgage, the lender will want to know how you intend to repay the capital at the end of the term. This could be through property sale, refinancing, or business profits, for example.
Why using a commercial finance broker can improve your chances
The commercial mortgage market is more complex than the residential market, with different lenders specialising in various property types, sectors, and loan sizes. Knowing which lender is most likely to approve your application, and on what terms, can save a lot of time and frustration.
A specialist commercial finance broker can:
- Identify lenders that match your specific business profile and property type.
- Help you prepare and present your financial information to meet lender expectations.
- Negotiate on your behalf to secure competitive interest rates and terms.
- Anticipate potential lender concerns and address them before they become obstacles.
How ASC can help you secure the right commercial mortgage
At ASC, we’ve been helping businesses access commercial finance for over 50 years. We recognise that every client’s situation is unique, and that securing the right mortgage involves more than ticking boxes on a checklist.
We take the time to understand your business, your plans for the property, and your long-term objectives. Then we match you with lenders who not only meet your requirements but are also likely to view your application favourably.
From gathering the necessary documentation to liaising with valuers, solicitors, and lenders, we manage the process from start to finish. Our goal is to make securing your commercial mortgage as straightforward as possible, while negotiating terms that work in your best interests.
If you’re ready to take the next step toward purchasing or refinancing a commercial property, get in touch with ASC today. We’ll guide you through the process, improve your chances of approval, and help you get the funding you need to achieve your business ambitions.
by create | Aug 5, 2025
Running a business with a partner can be exciting and rewarding, but circumstances often change. There are several reasons why a partner might want to leave the business. If you find yourself in this situation, you might be wondering, “Can I get a loan to buy out my business partner?”
Why buy out a business partner?
Business partnerships don’t always last forever. Common reasons for a partner choosing to exit include:
- Retirement or lifestyle change – one partner may be ready to slow down or step away.
- Differences in vision – you may both see the future of the business differently and decide it’s time to part ways.
- Change in personal circumstances — life events or financial needs may require a partner to leave the business.
Whatever the reason, buying out your partner can be a positive move, allowing you to maintain continuity while shaping the company’s future on your own terms.
How does a partner buyout work?
A partner buyout is essentially the purchase of your partner’s share of the business. The valuation of that share will depend on:
- The overall business valuation (often based on profits, assets, turnover, and future potential).
- The proportion of ownership your partner has.
- Any shareholder agreements or partnership contracts that are in place.
Can I get a loan for a partner buyout?
Yes, borrowing is often the most practical way to finance a buyout. Few business owners have the cash reserves to purchase a significant share outright. Several types of finance may be available, including:
- Business acquisition loanThese loans are specifically designed to fund the purchase of a business (or part of one, as in a partner buyout). They can provide the lump sum needed to buy out your partner, which you will usually repay over several years. When deciding whether to lend, lenders will assess the company’s financial performance and its ability to service the debt.
- Commercial loanA standard business loan may be suitable, especially if the amount required isn’t excessively high. Repayments are fixed and predictable, making planning easier.
- Asset financeIf your business owns valuable equipment, vehicles, or machinery, you might be able to raise funds against those assets. This option can release cash without disrupting working capital.
- Invoice financeFor businesses with a healthy sales ledger, invoice discounting or factoring can unlock cash tied up in unpaid invoices. This cash could potentially be used to part-fund a buyout.
What will lenders want to see?
Lenders will want reassurance that your business can thrive after the buyout. They are likely to assess the following:
- Business performance – financials, profit margins, and turnover.
- Prospects – evidence of stability and growth potential.
- Cash flow – your ability to service additional debt.
- Personal track record – your experience, role, and credit history.
- Security – depending on the loan size, lenders may require business or personal assets as security.
You’ll require a well-prepared business plan that demonstrates how you’ll manage operations as the sole owner, outlines your growth strategy, and explains how you’ll cover repayments
Challenges and considerations
Buying out a partner isn’t just about finding the money. There are other factors to consider, including:
- Valuation disputes – you and your partner might have differing opinions on their share’s value. A professional valuation is frequently the fairest and precise approach.
- Legal agreements – it’s essential to have a solicitor draft or review the buyout agreement to safeguard both parties.
- Cash flow impact – taking on debt will increase monthly expenses, so you need to be confident the business can handle the additional cost.
- Future growth – assess whether the buyout will limit your ability to invest in expansion or new opportunities.
The benefits of financing a buyout
While borrowing money to buy out your partner might seem daunting, it can bring long-term advantages, including:
- Full control – you have the freedom to make strategic decisions without challenge.
- Business continuity – a seamless transition prevents disruption to customers and staff.
- Future rewards – as the sole owner, you benefit from the entire financial upside of growth and success.
Many business owners find that the sense of independence that comes with a buyout outweighs the challenges of taking on debt. While it’s a significant decision, it could unlock the next chapter of growth and success for you and your company.
How ASC can help
At ASC, we’ve been helping entrepreneurs secure finance for over 50 years. Every situation is unique, and so is every buyout. Our role is to:
- Understand your business and your goals.
- Identify the most suitable finance options.
- Present your case to lenders in the right way.
- Save you time and stress by handling the process.
Because we’re independent and not tied to any one lender, we can focus solely on what’s right for you and your business.
If you’re considering a partner buyout and want to explore your finance options, get in touch with us today. We’ll help you find the right solution to make it happen.
by Conrad Robins | Aug 22, 2022
Background – Relocating and seeking business finance support
We know that when clients need a bit of a helping hand, ASC can really add its value. Dan Gateshill, ASC Hampshire, Dorset & Isle of Wight, received a request for finance from Mark, of Purrfect Pet Transport. Mark was then residing in Portugal and operating a boarding Kennels & Cattery, with the added service of transporting pets between destinations throughout Europe for their owners.
Looking to relocate back to the UK, Mark put his home and Kennels up for sale to use as the deposit for the purchase of the leasehold of Lower Hey Boarding Kennels & Cattery.
Dan Gateshill got straight to work and within 1 working day of submitting the application for a flexible business loan we received indicative terms.
Challenges – Rising costs and unexpected changes
So far so good, but then the vendor increased the price of the property! Dan was able to leverage his relationship with the lender to negotiate an increased loan amount.
Solution – Securing additional funding through strong lender relationships
When war broke out in Ukraine, Mark wanted to complete on the purchase even earlier – as it meant he could use the premises as a quarantine centre for abandoned animals. However, as his house in Portugal had not yet sold, he once again needed to borrow more!
ASC spoke to the bank, using our strong personal relationship with them, and explained the situation, asking to increase the loan. ASC were able to persuade the bank to get the deal done.
Outcome – A successful purchase and thriving new base
Our client completed and is now happily settled into his new Boarding Kennels & Cattery base in Lower Hey. Check out Mark’s Facebook Page for more details.
by Conrad Robins | Aug 20, 2021
Background – Supporting a family’s dream to run a kennels and cattery
It is becoming increasingly common for family members to be working together and support each other in business opportunities. That can bring with it its own challenges and in this recent deal, successfully completed by Conrad Robins, ASC Director in Devon, we overcame some of the expected issues and more.
Two generations of the Holmes family, were looking to borrow £300,000 to buy a boarding kennels and cattery in Crediton, licensed for 30 dogs and 15 cats, owners’ bungalow and set in 2 acres of grounds. This was a really exciting opportunity for the family giving them the chance to compliment and grow their dog breeding business which had opened the year before.
Challenges – Overcoming funding hurdles for a newly acquired business
There were a number of hurdles to get over, one being the business was closed when the family was looking to take it over so there were no recent accounts to provide to the lender to show a track record. Similarly, whilst the family had another business, this had been operating for a year only so we didn’t have the usual history of financials. These are some of the things that a bank will normally look for and expect to find as part of the application for a loan. Every application has its quirks and that’s why it is so important to have a broker helping to shape, perfect and present your proposal to the bank.
How did ASC help?
Solution – Expert guidance and lender relationships make the difference
When Conrad got his paws on the case his track record and relationship with lenders helped the Holmes family get their finance secured. His 30 years’ experience of commercial finance overcame the various challenges lenders presented and allowed him to put together a strong case to the bank.
“As with all the clients I work with it was a pleasure getting to know the Holmes family and helping them get what they need – I’m so glad that we could make it happen for them”
Outcome – A thriving family business with a bright future
We spoke to the Holmes family this week who are delighted to report that the kennels and cattery are full!
To find out more about ASC and how we can help you to secure finance for your business, please visit our website and let us give you a call. You’d be barking mad not to!
by Conrad Robins | Dec 22, 2020
Background – Supporting a family business dream
An award-winning dog breeder in Gartmore, Stirling, approached ASC Scotland Director Alison Hunter to assist him and his wife purchase a Boarding Kennel and Cattery.
The deal was fraught with uncertainty for a number of reasons, but that wasn’t going to stop ASC.
Kennel Finance
Challenges – Overcoming funding and trading history issues
The new owners required the maximum Loan to Value (LTV) amount as the funds available for deposit were limited. An additional complication for the new owners came when the lenders noted that the business had a poor trading history due to it having been run as a lifestyle business by the former owners.
Solution – Building a strong business case for lenders
Alison needed to put together a very strong business case in order to really sell the application to lenders. She worked with the clients to compile detailed business plans and projections in order to support the case, plus she highlighted the fact that the new owners were award winning breeders to win their support.
Outcome – Funding secured and business development underway
Lenders were content with the proposition put to them, and were ultimately happy to lend £422,250 for the purchase and development of the business.
