Commercial property finance is a type of financing that is used to purchase or invest in commercial properties, which are properties used for business purposes rather than residential purposes. This can include retail spaces, office buildings, industrial properties, and other commercial real estate.
Commercial property finance can be used to purchase properties outright or to fund major renovations or improvements to existing properties. It typically involves a loan from a financial institution such as a bank or a specialised commercial lender, which is secured by the property itself. The terms of the loan will vary depending on the lender, the borrower's creditworthiness, the property's value, and other factors.
The loan may be structured as a traditional mortgage with regular payments of principal and interest, or it may be structured as a commercial real estate loan with more flexible terms and repayment schedules. In some cases, the borrower may be required to provide additional collateral, such as other properties or personal assets, to secure the loan.