A simple product with a defined monthly payment making forecasting in the short term easy to do
Commercial Mortgage Interest Repayments are tax deductible.
Business Cash is not tied up in long-term finance; the company has more liquidity rather than being cash poor.


Commercial Mortgage Contracts will commit a company to a longer debt period.
Variable rate of interest attracts higher payments if there are changes in the interest rate.
Repayment calculated on a monthly basis: Failure to pay involves penalties such as additional interest. Continued default on debt often results in the repossession of the property.
Due to the impersonal nature of a commercial property, little or no tolerance shown for default and repossession is almost immediate.

The Bottom Line

  • Lenders evaluate the investor’s creditworthiness and the loan’s collateral.
  • Financial statements going back three to five years are also investigated to show fiduciary and income tax disciplines.
  • The Commercial Property must demonstrate growth as an investment asset

About the Author

Daniel Lewis

Daniel Lewis

Freelance Content Writer

Daniel Lewis is an MBA accredited investment professional who wants to assist small business owners to gain access to finance.

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