Tips On Securing Commercial Property For Your Business
When you start a business and it begins to grow, you may find that you need a commercial property to help with your expansion. But if you do not have the capital to fund this, it may seem impossible. There are a few different ways that you can choose to help you secure business premises, from loans for small business to commercial mortgages and renting, which we will look at in more detail below!
What is your budget?
When choosing a commercial property, one of the most important things to think about before getting started on your search is how much you are willing to pay for the space. If your business is new, you may have savings that you can put towards premises, but if not, you’re going to need to establish how much you can afford when it comes to a loan to help you with the purchase. Thankfully, there are many options that you can choose from when it comes to having funds available to purchase your first business premises to suit your circumstances.
How will you finance your property?
If you don’t have the capital built up to help you purchase a commercial property – don’t worry! There is a range of financial options that you can choose from to help you with this crucial step in your career. Here are 3 of the most popular that you could consider.
Compare business loans
As the name suggests, these loans are specifically made for businesses to give them financial support when they need it most, so that they can become successful. Traditional lenders like your bank can offer you a range of different options to help you, which may be beneficial if you’re hoping to secure a property. Although these loans may take longer than online lenders to be approved, you can benefit from a huge range of loan amounts with different repayment requirements. The only downside to this is that you may struggle to be approved if you have been in business for less than 2 years.
Try a commercial mortgage
A commercial mortgage is just like a mortgage you’d apply for when buying a house, you will put down a deposit for your premises and pay your lender back monthly along with interest. If you plan on using your premises for your own business, you will need an owner-occupied mortgage, which simply means you’re using it for your own business purposes. Much like business loans, you may need to prove to your lender that you have been trading for over 2 years, so that they can decide whether your business will be successful and whether you will be able to pay back the loan.
Another option is to rent a commercial space. If you are a small, new business that is struggling to be approved for a loan to help you secure property, renting is always an option. Although this means you will not own your premises, you will still be able to choose an area and a space that is right for you. If you find a property that you’d like to rent for your business, you may find that you have more flexibility – you are not tied into the building if you find that you need to grow into a larger space, and you will not be responsible for the upkeep of the building in most cases. You may have to find the cash for a down payment but after this, you will pay to rent the building at an agreed price each month.
Does it suit your needs?
When you’re choosing a commercial property for your business, you’ll need to research available spaces to find premises that suit your needs. You should think about what you need your property to do. Do you need a shop floor to sell a product? Or maybe large windows to create a display. Maybe you’ve decided that your premises need to be on more than one floor to help with storage. You should keep all of this in mind when choosing the perfect space for your business. As well as the property itself, you should think about whether the surroundings are well-suited to your needs, like accessible car parking and transport links for both your customers and your employees. Making a list of requirements can help you to identify the best property to help with your business growth.