Commercial Mortgage for a Limited Company with 18 Months’ Trading

Many lenders prefer businesses to have at least two years of trading history before considering a commercial mortgage. However, this doesn’t mean funding is impossible.

In this case study, Positive Commercial Finance arranged a Commercial Mortgage for a Limited Company that had been trading for just 18 months, enabling the business to purchase strategically important commercial premises.

The Opportunity

Our client had built a successful business in a relatively short period and was presented with the opportunity to purchase a prime commercial property in a key trading location.

Owning the premises would provide long-term stability while supporting the company’s future growth.

However, the business had only been trading for 18 months, meaning it did not meet the minimum trading history required by many mainstream lenders.

The Challenge

The biggest obstacle was the company’s limited trading history.

Many commercial mortgage providers require at least two full years of filed accounts before considering an application. As a result, the client risked missing an excellent opportunity despite demonstrating strong business performance.

The challenge was to identify lenders willing to assess the overall strength of the business rather than relying solely on standard lending criteria.

Our Solution

Positive Commercial Finance approached a carefully selected panel of High Street banks with whom we have long-established relationships.

Rather than focusing only on the company’s age, we presented a detailed funding proposal that highlighted:

• The directors’ experience and track record.
• The business’s financial performance since trading began.
• The strategic importance of the property purchase.
• The overall affordability of the proposed mortgage.

Following detailed discussions with several lenders, we secured indicative terms from three High Street banks.

The client selected the option that best balanced competitive pricing, borrowing levels and long-term affordability.

Deal Structure

• Loan to Value (LTV): 70%
• Loan Amount: £565,650
• Interest Rate: 3% above Bank Base Rate (variable)
• Arrangement Fee: 1.5% (added to the loan)
• Term: 15 years

The Result

The client successfully purchased the commercial property despite having only 18 months of trading history.

By presenting the strengths of the business rather than focusing on a lack of two-year accounts, we secured a commercial mortgage that supported the company’s long-term growth plans.

This case study demonstrates that businesses with a shorter trading history may still be able to access Commercial Mortgages for Limited Companies when applications are presented to the right lenders with the right supporting information.