By Matt Karagul, Specialist Finance Adviser, Henry Dannell
ARE YOU LOOKING TO EXPAND YOUR BUSINESS?
Part of the journey of expanding your business often involves acquiring business premises – a significant milestone for many entrepreneurs. This asset brings stability, ownership, and offers the potential for long-term growth and financial security. However, acquiring commercial property often requires substantial capital, making financing a crucial component of the process.
In this article, we will explore the various aspects of purchasing business premises with financing and the strategic considerations involved.
WHY OPT TO FINANCE YOUR BUSINESS PREMISES?
Choosing to finance your business premises instead of paying in full with cash can provide several advantages. Primarily, it enables you to preserve your liquid capital for essential day-to-day operations, emergencies, and investments in other aspects of your business.
Additionally, financing also spreads the cost of acquiring the property over an extended period, making it more manageable and less burdensome on your finances.
COMMERCIAL MORTGAGES: CONSIDERATIONS & BENEFITS
Commercial mortgages are a common option for financing the purchase of business premises. These loans are specifically designed for this purpose and often offer lower interest rates and extended terms compared to traditional mortgages. Typically, the property itself often acts as collateral, facilitating favourable loan terms.
"Part of the journey of expanding your business often involves acquiring business premises – a significant milestone for many entrepreneurs.
KEY CONSIDERATIONS
Deposit
A substantial deposit is often required, with the amount varying based on your chosen financing option.
Interest Rate
Interest rates can significantly impact the overall cost of financing. Considering whether a fixed or variable rate is more suitable for your financial situation is essential, while also ensuring you get the most competitive rate.
Professional Advice
Seeking the guidance of a specialist finance adviser in commercial properties is crucial to securing the right solution for you. Our expertise can help you navigate the complexities of property acquisition and financing.
Purchasing business premises with financing is a strategic move that can pave the way for long-term stability and growth. This approach allows you to leverage your existing assets and resources to acquire a new valuable asset while preserving liquidity for operational needs.
However, it's crucial to approach the process with careful consideration, thorough research, and professional guidance. By doing so, you can make an informed decision that aligns with your business goals.
Ready to take the next step in acquiring your business premises? Contact Henry Dannell today for expert guidance and support.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
