Commercial Property Finance Built Around Your Requirements

Commercial property financing can involve more complex considerations than residential property finance. The appropriate financing structure may depend on the property type, purchase price, rental income, business activity, financial position, existing liabilities, ownership structure and the financial institution’s criteria. Prime Trust helps eligible clients understand these considerations and navigate potential commercial property financing options.

Understanding Commercial Mortgage Eligibility

Commercial property financing can involve a detailed assessment of both the borrower and the property. Financial institutions may consider:

Property Value
The value of the property and supporting valuation.
Property Type
The nature and use of the commercial property.
Purchase Price
The proposed acquisition value and transaction structure.
Rental Income
For investment properties, rental income and lease arrangements may be considered.
Business Financials
For owner-occupied properties, the financial strength of the business may be relevant.
Cash Flow
Business or investment cash flow and repayment capacity.
Existing Liabilities
Current loans and other financial commitments.
Credit Profile
Relevant credit history and repayment behaviour.
Ownership Structure
The legal and ownership structure of the applicant.
Property Documentation
Title deed, valuation and other relevant property documents.

Financing Commercial Property as an Investment

Commercial property can be acquired for different investment objectives, including rental income and long-term asset ownership. For eligible investment properties, financial institutions may consider factors such as:

  • Existing rental income
  • Lease agreements
  • Occupancy
  • Property valuation
  • Property location
  • Property type
  • Purchase price
  • Applicant's financial position
  • Existing liabilities
  • Expected repayment capacity

Prime Trust can help investors understand the potential financing considerations before proceeding.

Finance Your Business Premises

If your business operates from leased premises, you may consider purchasing an eligible property for your own business operations. Potential benefits may include:

  • Greater control over business premises
  • Long-term property ownership
  • Potential asset accumulation
  • Reduced dependence on leased premises

However, property ownership also involves significant financial commitments and costs. Prime Trust can help you understand the financing considerations associated with an eligible commercial property purchase.

Reviewing Your Existing Commercial Mortgage

If you already have commercial property finance, refinancing may be considered for various reasons, depending on eligibility. Potential objectives may include:

  • Reviewing financing terms
  • Restructuring existing obligations
  • Managing cash flow
  • Consolidating eligible facilities
  • Exploring additional financing
  • Reviewing the overall financing arrangement

Before refinancing, clients should consider the existing outstanding balance, current terms, settlement charges, new financing costs and the overall financial impact.

Unlocking Potential Financing Against Eligible Property

Property owners may be able to explore financing secured against qualifying commercial property. Potential uses may include eligible:

  • Business funding
  • Working capital
  • Expansion requirements
  • Investment opportunities
  • Refinancing

The availability, loan-to-value ratio, pricing and purpose of financing depend on the property, applicant profile and financial institution’s criteria.

Commercial Mortgage Documentation

The exact requirements vary, but may include:

Applicant / Company Documents

  • Trade licence
  • Certificate of incorporation
  • Memorandum & Articles of Association
  • Shareholding documents
  • Company profile
  • Passport / Emirates ID of relevant individuals

Financial Documents

  • Company bank statements
  • Personal bank statements, where applicable
  • Audited financial statements
  • Management accounts
  • VAT returns, where applicable
  • Existing loan statements
  • Other financial information

Property Documents

  • Title deed
  • Sales & purchase agreement
  • Property valuation
  • Property details
  • Existing tenancy agreements, where applicable
  • Rental income information
  • Other property-related documents

From Property Requirement to Financing

01

Understand the Requirement

We understand your property, intended use and financing objective.

02

Review the Profile

We consider relevant applicant, business and property information.

03

Explore Potential Options

We help you understand potential financing structures.

04

Prepare Documentation

We assist in organising the relevant information and supporting documents.

05

Application & Coordination

We coordinate with the relevant financial institution during the application process.

06

Assessment & Decision

The financial institution conducts its own credit, property and compliance assessment before making a decision.

Look Beyond the Financing Rate

Commercial property financing can involve several costs and considerations, such as:

  • Interest / profit rate
  • Processing fees
  • Property valuation fees
  • Legal / transaction costs
  • Registration-related costs
  • Insurance-related costs, where applicable
  • Early settlement charges
  • Other bank or transaction fees
  • Down payment / equity contribution
  • Monthly repayment
  • Total financing cost

Clients should evaluate the overall financing cost, not just the headline rate.

Commercial Property Financing Can Be Complex

Applicants may encounter challenges involving:

  • Complex company structures
  • High existing liabilities
  • Insufficient financial documentation
  • Property valuation differences
  • Complex ownership arrangements
  • Rental income considerations
  • Incomplete property documentation
  • Limited business financial history
  • High financing requirements
  • Additional KYC or compliance requests

Prime Trust helps clients understand these considerations and prepare their requirements more effectively.

Professional Commercial Property Finance Guidance

Experience
Practical banking and financial services experience.
Profile & Property Understanding
We consider both the applicant and the underlying property requirement.
Documentation Guidance
Support in preparing relevant financial, corporate and property information.
Application Coordination
Assistance throughout the application process.
Transparent Communication
Clear guidance without guaranteeing approval or financing terms.

Frequently Asked Questions

A commercial mortgage is financing secured against an eligible commercial property, typically used for property acquisition, refinancing or other approved purposes.

Eligible businesses may be able to obtain commercial property finance to acquire premises for their operations, subject to the financial institution’s criteria.

Potentially. Eligible investors may explore financing for qualifying commercial investment properties.

Eligible property owners may explore refinancing, subject to the applicable financial institution’s assessment.

Potentially, depending on the property, ownership structure, existing financing and financial institution’s criteria.

Rental income may be considered in certain financing assessments, subject to the financial institution’s policies and documentation requirements.

There is no universal amount. The potential financing depends on the property, valuation, applicant profile, financial position, existing obligations and financial institution criteria.

Timelines vary depending on the property, valuation, documentation, applicant profile and financial institution.

No. The final decision rests with the relevant financial institution following its own credit, property, compliance and risk assessment.

Planning to Purchase or Finance Commercial Property?

Tell us about your property and financing requirement. Prime Trust can help you understand the potential financing options and guide you through the next steps.