Looking to secure your first commercial mortgage? 7 top tips for businesses

If you are operating your business from home or perhaps renting space, buying your first commercial property can be an exciting, yet daunting task. Securing a commercial mortgage requires strategic planning and attention to detail. Here are 7 top tips to help you take control of the process:

   Early Preparation: Avoid last minute rushes. Failing to prepare may leave you relying on good fortune.

•    Engage an Accountant: A skilled accountant ensures your financial figures are in order. Lenders rely on past performance rather than future optimism; provide solid evidence of your business stability.

•    Prepare Formal Accounts: Whilst not wholly necessary for a sole trader, formal accounts enhance your chances of securing the best possible terms.

•    Company Bank Account: Set up a dedicated business account for financial clarity.

•    Credit Commitments: Consistently meet credit commitments to maintain a positive track record. Isolated minor credit hiccups can be explained, avoid a pattern of poor credit management.

•    Personal Drawings: If you trade as a Limited Company think about the level of dividends you need to draw, if possible, try not to draw all of the profits.

•    Balance Growth and Commitments: Whilst finance to fund business growth can be good, be careful not to overcommit your cash flow.

Remember, thoughtful preparation and expert guidance can significantly improve your chances of securing the right commercial mortgage for your business. Consulting with a reputable broker can save you time and money, whilst ensuring your business is favourably presented to lenders.