Property Finance

If you are considering secured property finance as an option to raise additional capital, there is no shortage of lenders to choose from. However the more you shop around the more confusing the choices become. It is therefore advisable to seek impartial advice to guide you through the various options, so that you find the right solution at the appropriate rate.

Property finance is usually an option if the property is owned or if other assets can provide security against the loan. The funds released can provide a liquidity boost to your business or it can be utilised to fund growth. Whatever reason it should ideally be the most appropriate solution to the business requirements, having considered all other available funding such as:

  • Factoring/Discounting
  • Overdrafts/Loans
  • Development Loans
  • Asset Refinance
  • Trade Finance
  • Payroll Finance

The advantages of a secured business loan are:

  • Your interest rate should be lower than other types of business loans
  • You may be in a position to borrow more, subject to the value of the security offered
  • You will normally be given a longer loan period than with unsecured loans

The disadvantages of a secured business loan are:

  • Assets secured are at risk in the event of default
  • Repayment terms may not be as flexible
  • The loan process can be protracted and more costly

Before choosing secured finance you should have a clear idea of the legal implications and whether it is the right option. An independent financial advisor should be able to help in this regard.