You may be considering getting a commercial mortgage loan for your business, where you will use your real estate as a form of collateral, which is done for the reason to ensure that no matter what may happen, your repayment is secure that you will have to pay it back, or else they will be able to take possession of this real estate and use it as a form of repayment of the loan that you took out. A commercial mortgage is pretty much the same sort of thing as when you take a residential mortgage on your home, where you live, the only difference being that you cannot use your residential property in commercial mortgages, you need to make use of a commercial building, such as your offices to secure the loan. The other difference between a residential mortgage and a commercial mortgage is that a commercial mortgage is generally taken out by the business and not by an individual, which is what residential mortgages are taken out by (the homeowner). Whether your business is a partnership, a limited company or even an incorporated business, it does not matter – the lender will check out the options with regards to lending money out and the viability of the company’s credit rating and other such stuff.  

A Commercial mortgage can sometimes be a bit more complicated than a generic residential mortgage, as there are a few more variables that need to be considered, such as the partnership agreements and terms of ownership of the building that you are hoping to use as collateral for getting your commercial mortgage. The one safety net that you will find in getting a commercial mortgage is that if you cannot pay back the loan for whatever reason, the lender can only ever seize the commercial property that was placed down as collateral and never any of the business partner’s personal assets, whereas in a residential mortgage, this can sometimes happen. If you want to take on a commercial mortgage, you will more than likely have to qualify to be given this sort of loan and the lender will check out your company and then make a decision on what to do – whether to grant your company the commercial mortgage or deny your company it – it really all comes down to the risk factors for their company and whether or not it worth lending out this sort of money.