How does commercial property finance work? Commercial Property

Commercial property finance is the funding of property used for business or investment purposes, rather than as a home.

It typically involves a secured loan (often a mortgage) against a commercial asset. A lender (bank or specialist funder) provides a loan secured by a legal charge over the property.

The borrower (a company, investor, or developer) repays it over an agreed term with interest.

If the borrower defaults, the lender can enforce its security — usually by taking possession or selling the property to recover the debt.