How lenders decide, and what to have ready
A quick look at what a commercial lender assesses, and the documents that make an application go smoothly.
Written by Matt Vincent DipFA, CeMAP, CeRER, BSc · Published 25 June 2026 · Version 1.0 · 5 min readCommercial lending is assessed case by case. Broadly, a lender is asking three questions: can this loan be repaid, is the property good security, and is the borrower reliable?
What they look at
- The income. For a trading business, your accounts and profitability. For an investment, the rent and how well it covers the payments.
- The property. Its type, condition, value and how easy it would be to sell, assessed through a valuation.
- The borrower. Your experience, credit history, and the company structure (and any guarantees).
- Loan-to-value (LTV). The proportion of the property's value being borrowed. A lower loan-to-value ratio can often result in more competitive lending options.
Documents that help
Having these ready tends to speed everything up:
- Last two or three years of business accounts (for trading cases)
- Recent personal and business bank statements (typically the last six months)
- Details of the property and, for investments, the tenancy or lease and rent
- Company details if borrowing through a company or SPV
- Proof of the deposit and ID
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This guide was published on 25 June 2026 (version 1.0) and reflects our understanding at that time. It is general information about commercial mortgages, not financial advice or a recommendation. Lending criteria, interest rates and tax rules change over time, so please confirm current details with a qualified advisor before acting. Reference: PL-CM-HOWLENDERS-v10.