Many entrepreneurs wonder if it is possible to obtain a business mortgage to purchase, expand, or renovate a property intended for their business.
The answer is yes, you can: banks and credit institutions offer various business mortgage solutions, designed to support the investments of companies, corporations, and professionals.

In this guide from MutuoFirenze.it we will see how business mortgages work, who can apply for them, what guarantees are needed, and what the average disbursement times are.

What is a business mortgage

A business mortgage is a medium-long term loan (from 5 to 20 years) granted to a company or professional to finance real estate, machinery, or investment projects.
It is a different product from a personal mortgage, because it is linked to the productive and asset needs of the economic activity.

The most common purposes are:

Purchase of warehouses, shops, or offices;

Renovation or expansion of business properties;

Purchase of land or operational headquarters;

Medium-long term productive investments.

Who can apply for a business mortgage

The following can apply for a business mortgage:

Sole proprietorships;

Partnerships (SNC, SAS);

Corporations (SRL, SPA);

Professionals with a VAT number who need a property for professional use.

The bank mainly evaluates:

The company’s financial reliability (financial statements, net income, cash flows);

The credit history and the presence of any reports;

The repayment capacity over time;

The value of the property or investment to be financed.

Required guarantees

As with personal mortgages, a real guarantee is also required for businesses: usually a mortgage on the property purchased or owned.
In some cases, additional guarantees may be required, such as:

Personal guarantee by the partners or owner;

Guarantees from the Central Guarantee Fund for SMEs;

Insurance policies to protect the credit.

👉 SMEs and innovative startups can often access favorable conditions thanks to public incentives or European funds for business development.

Documents required for a business mortgage

To assess the application, the bank requires specific documentation, which may include:

Updated chamber of commerce registration;

Latest financial statements or tax returns;

Business plan or investment plan;

Quotes and invoices related to the purchase or works;

Land registry documents of the property;

Identification documents of partners or owners.

Submitting complete and consistent documentation greatly increases the chances of approval.

Timelines and main steps

The steps to obtain a business mortgage are similar to those of a personal mortgage, but require more in-depth analysis:

Document collection and mortgage application

Assessment of creditworthiness and project sustainability

Appraisal of the property or investment

Bank approval and signing of the mortgage contract

Disbursement of the amount, generally at the time of the notarial deed

Average timelines range from 4 to 8 weeks, depending on the bank and the complexity of the application.

Business mortgage or real estate leasing?

As an alternative to a mortgage, many companies consider real estate leasing, a formula that allows you to use the property by paying a periodic fee and redeem it at the end of the contract.
The choice between mortgage and leasing depends on:

The amount of the investment;

The company’s tax and accounting needs;

The expected duration of use of the asset.

A business mortgage consultant in Florence can help you understand which solution is more convenient for your business.