Business finance · 7 min read
Commercial mortgage preparation checklist: property, business and repayment story
Commercial property finance is easier to assess when the property and the business story are prepared together. The lender is not only looking at a building; it also needs to understand the transaction and how the borrowing is expected to be serviced.
Define the transaction
Is the business buying premises to occupy, refinancing an existing property or acquiring an investment property? Record the price or value, existing borrowing and the amount of new finance required.
Describe the property and use
Property type, location, condition, tenure and how the premises will be occupied can all affect the finance route. Flag unusual or mixed uses early rather than discovering them during valuation.
Prepare the financial story
Useful information can include filed accounts, management information, bank statements, turnover, profit, existing debt and the owners' experience. The exact evidence depends on the case and provider.
Explain repayment and resilience
Show how normal business cash flow supports the proposed payment and what assumptions sit behind the plan. For investment property, rental information and tenancy details may become part of the assessment.
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