Sun. Oct 1st, 2023

Applying for a business mortgage for the purchase of commercial real estate

Every year, hundreds of SME’s/Business entrepreneurs in the Netherlands apply for a business mortgage – to purchase commercial real estate, or to make an investment with real estate as collateral. But the majority of applications are rejected. Where, and how, is it possible to submit a successful application?

Buying commercial real estate is an attractive proposition

For many business people, it is an attractive proposition to buy commercial real estate. Like an office building, a shop, a catering building or a warehouse. They save on rental charges, or use it to generate rental income, and benefit from the appreciation of the property in the future.

You need a business mortgage to purchase the commercial real estate. And you don’t get that easily, especially in recent years.

Banks reject most applications

Banks are not keen on business mortgage applications from SME’s/Business entrepreneurs. Banks now have strict lending criteria and worry they cannot earn enough money. So not surprisingly, more and more alternative forms of financing are coming onto the market. For example crowdfunding, where you, as an entrepreneur, submit your application to a large group of small investors who can all finance a little bit.

Another emerging form is financing by private investors. In the case of real estate financing, these are often people who want to invest their assets in a product wit little associated risk. Investing in commercial real estate can be attractive to them, depending on, among other things, the location, the value of the property, the loan to value and the stability of the borrower making the application.

Briqwise is an online platform that matches SME’s/Business entrepreneurs who want to buy commercial real estate with private investors who see this as a safe way to generate returns.

What should you submit with your application?

If you submit an application for real estate financing via Briqwise, we need various information from you to assess the application. First of all, the details of the real estate that you want to purchase or of which you already own. Then – and this is a very important – the valuation report of the commercial property that you want to purchase and / or that you want to use as collateral for your application. In addition, the amount to be borrowed and the desired term.

After your online application we can make an appointment to meet. Then we’ll look at the history, annual company figures and what plans you have. However, the value of the commercial property in relation to the loan you want to apply for is often decisive.

When you fill in the form, you automatically apply for a sample financing proposal. You will receive this immediately by e-mail, so that you can immediately see what your annual expenses will be.

Apply for your business mortgage now

Are you an SME/Business entrepreneur looking to finance commercial real estate? Are you curious about your options for a business loan through Briqwise? Click here to go directly to the application form.


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