Whether you're expanding your business, purchasing commercial premises, or investing in commercial property, a commercial loan can provide the funding you need to move forward. However, the UK commercial lending market is complex and varied — and finding the right product for your needs requires expert insight.
At Friends Capital Ltd, we specialise in helping businesses and investors across the UK secure the right commercial finance. In this guide, we’ll explain what commercial loans are, how they work, the different types available, and the key factors to consider before applying.
A commercial loan is a type of finance used by businesses or investors to fund:
Unlike residential mortgages, commercial loans are assessed on the strength of the business, the asset being financed, and the borrower’s experience. They are typically secured against property or other business assets, but unsecured options are also available in some cases.
Used to buy or refinance commercial premises such as offices, warehouses, retail units, or mixed-use properties. Available to owner-occupiers or investors.
A specific type of commercial mortgage for landlords operating through a limited company.
Short-term loans used for fast purchases, auction buys, or refurbishment projects.
For ground-up construction or major refurbishment projects. Staged funding is released as the project progresses.
Used to purchase business-critical equipment, machinery, or vehicles.
Typically smaller, short-term loans not backed by property but based on business turnover and creditworthiness.
Commercial finance is available to:
Each lender has its own criteria, but most will require a solid business plan, trading history (where applicable), security, and evidence of affordability.
Unlike residential mortgages, commercial loans are evaluated based on:
At Friends Capital, we take time to understand your business and match you with lenders who will take a realistic and supportive view of your goals.
While requirements vary, you’ll usually need to provide:
Our team will help you gather the right documents and present your application professionally to give you the best chance of approval.
A commercial loan can be used to buy property, grow your business, invest in assets, cover short-term cash flow needs, or fund development projects.
Most lenders require a deposit of 25%–40% of the property value, depending on the asset and risk involved.
Yes, but your options may be limited. Specialist lenders may still offer finance based on the value of the property or business performance.
Commercial mortgages typically take 4 to 8 weeks. Bridging or short-term commercial loans can complete in as little as 7 to 21 days.
Yes, commercial loans usually carry higher interest rates because they are considered higher risk and often more complex to underwrite.
Commercial finance is never a one-size-fits-all solution. Whether you're purchasing business premises, expanding your portfolio, or seeking capital to grow your operations, it’s important to structure the deal correctly.
At Friends Capital Ltd, our experienced advisers will:
Get in touch with one of our expert mortgage and commercial finance advisers today to explore your options and find the right product for your business or investment needs.