Business Mortgage

A business mortgage or commercial mortgage is a financial transaction in which a business obtains a loan using its commercial property as collateral.

This form of financing is often used to purchase property for commercial use such as hotels, warehouses, office space or retail space.

Business mortgages are typically easier to obtain than business loans because they are secured, meaning the risk for the lender is minimal. Business loans, on the other hand, rely on the creditworthiness of the business to gauge the risk of the business defaulting on loan repayments. For this reason, business mortgages are often used to obtain larger amounts of financing than would be obtainable through business loans.

More on this topic:
Business loan comparison