Commercial and semi-commercial finance are funding methods used to finance properties but differ depending on the nature of the property type, borrower and associated risk.

Wondering what the key differences are for both? Let us simplify it for you and let’s work together on finding the best solution for your clients.

Commercial Finance

Commercial finance refers to a loan used for business purposes. In specialist terms, a commercial loan can be used to purchase a property your client is currently renting but wants to buy, businesses that want to raise capital through re-financing or property investors that purchase for letting out. This covers anything from office buildings and retail spaces to warehouses and factories.

Typically, loan amounts for commercial finance are high and have longer repayment terms, as a result they often have higher interest rates due to the increased risk for the lender. Fear not, at Crystal we aim to source the best deal with the most favourable terms, making sure you and your client are highly satisfied with the outcome.

Semi-commercial Finance

Semi-commercial finance relates to finance for properties that are used for both commercial and residential purposes, also known as mixed-use properties. In the specialist finance market, a semi-commercial loan is more popular, due to the niche nature of many businesses’ premises. This could be a building with shops on the lower floor, and apartments on the upper floor or properties that have a small commercial aspect in a residential area, like a shop or café.

Usually, there is a lower risk involved in semi-commercial finance, due to the residential element of the deal offering a stable income. Loan terms will also vary, depending on the complexity of the case, however we’re experts at what we do and can almost guarantee we’ll source a lender to fulfil your clients needs.

Whilst commercial finance is generally focussed on business operations and income generation, semi-commercial finance is more suited to mixed-use properties, that have both residential and commercial purposes.

Choosing Crystal for Commercial Deals

We know that choosing the right finance for your clients can be a struggle, particularly in the commercial space. The complexity of loan application processes combined with the unique requests from businesses is a recipe for some serious confusion!

At Crystal, we’re the clear choice for making the complex simple. We provide clear solutions to your client cases, and like to say a Crystal clear yes, when others say no. Call our New Business Advisers on 01827 337710 or get a quote through our CrystalHUB and let us help get those commercial deals over the line.

Find out more about commercial finance here.