The biggest roadblock in operating a small business is the impossibly high commercial rental. A commercial mortgage is a great way to buy space for your business. It provides a wonderful solution to meet all your business needs.
As your IFA in Penarth, we can help you in procuring a commercial mortgage successfully. Let’s take a look at some of the benefits of taking a commercial mortgage loan.
Benefits of a Commercial Mortgage
The number one benefit of a commercial mortgage is that you will own the premises and you won’t have to pay any rent month after month. Even though the lender would legally have all the rights to the property until you pay off the loan, it’d be worth it at the end of the term.
Alternatively, you can get a commercial mortgage to invest in your business or to buy an existing business. However, if you are not keen on getting space for your business, you could invest these funds in a commercial or residential property.
Another benefit of a commercial mortgage is that you get a stable environment to plan your business. Your mortgage does not fluctuate as your rentals would. Commercial mortgage loans are available at low interest rates when compared to other types of unsecured loans.
Moreover, the interest you pay on your commercial mortgage can be deducted from your tax bill. This way you can lower your overall tax bill.
A commercial mortgage also provides the much-needed funding for cash flow management.
Types of Commercial Mortgages
A commercial mortgage is usually offered at one of two different interest rate types – variable interest and fixed interest. A variable interest rate gives you the flexibility when it comes to repayment. You can pay the balance principal without paying any penalty for pre-payment.
With a fixed interest loan, you can benefit from the predictable payments thanks to the fixed rate of interest that holds for the entire term of the mortgage.
As your IFA in Penarth, we can help you choose from a wide range of commercial mortgage loans including:
- Bridge loans
- Hard money loans
- Real estate purchase loans
- Participating mortgages
- Joint venture loans
Contact Romilly Financial
We are a professional IFA in Penarth with years of experience. We have helped businesses from diverse industries in procuring a suitable commercial mortgage for their business. No matter what your requirement, let us know and we will guide you all the way. Get in touch with us today for a free initial consultation.