Buying a new store or new offices can be a great investment for your business, which is why banks offer mortgages for companies. Do you want to know what conditions and requirements they have? We tell you everything.
What are business mortgages?
Banks offer fixed mortgages and variable mortgages to finance the purchase of real estate from a company or business. In this way, business mortgages are loans whose sole purpose is to finance the purchase of a property for a business; an office, an industrial building, a place …
Conditions of business mortgages
The conditions of business mortgages are usually quite similar to the conditions that mortgages have for individuals.
It is true that each entity or bank will have its own conditions and that these can change according to the type of profile of the company or business applicant, however these are the most common conditions in most corporate mortgages:
Maximum financing up to 70% of property valuation
Maximum repayment term of up to 20 years
Possibility of having a period of lack
If you don’t know what the best mortgage for your company may be, you can always turn to a mortgage comparator to find the banks that can offer you the conditions you really need for the mortgage in your business.
Requirements to apply for a business mortgage
In order to obtain this type of business loan, the documentation proving the professional activity of the company must be presented (VAT declaration, Social Security certificate that is aware of the relevant payments and the deed of incorporation of the business).
Once the professional activity of the business has been demonstrated, the mortgage requirements for companies will be very similar to conventional mortgages;
Minimum savings must be had (between 15% and 20% of the property to be financed)
Demonstrate sufficient liquidity to pay monthly fees
Not be on any delinquency list
Business Mortgage Simulator
Having the support of a business mortgage simulator is always positive to find the best mortgages. Through this financial tool you will have the possibility to calculate approximately the monthly installment to pay for your business mortgage. Using a business mortgage simulator can help you get a closer idea of the cost of your mortgage and organize your business finances more optimally.