Starting a business or expanding an existing one is a major step for any entrepreneur. The first move would be to ensure that your business premises meet the standard for the type of enterprise you have. Purchasing a commercial property for your business needs is an asset that will escalate in value over time.
Securing finance for your commercial property is not as simple as walking into your financial institution and asking for a loan. It can be intimidating if you are not well informed about the processes involved.
The requirements for financing a commercial property is a lot more complicated than securing a home loan. It requires a solid application along with a detailed proposal to convince the bank to approve the finance you need in order to purchase the commercial property. Collect research on the property you intend to buy as this can also assure the lender that the property is a good investment.
Remember, when applying for a loan, most financial institutions will expect you to have a certain percentage of the loan to put down as a deposit. The deposit amount will depend on the nature of the business, financial stability, and other factors that the institution may consider.
When applying for finance, institutions, banks, and lenders require important documentation that will help secure your loan. These documents include:
These are the key factors which financial institutions take into consideration:
How to apply for a loan:
Once your financial institution has approved the loan you can go ahead and make your purchase. Do not forget, just like how residential property purchases may have a few hidden costs, so too will commercial sales. Query this before you sign on the dotted line as these costs will affect your monthly expenses and the business's ability to pay the monthly loan premium.
Buying an investment property can be a challenging process. Enlist the services of RealNet today for expert property advice and find the ideal investment property for your portfolio. View our commercial property listings and contact us now!