When you’re starting out on an entrepreneurial journey, there will come a time when your business needs working space. There are many options to go about it. But you’re probably stuck with confusion after finding out the exorbitant rental rates in the locality that you want to set your business up.
Would taking a commercial loan be a wise option? Here are four benefits that you can consider before throwing your bucks out to a landlord.
Ownership of the business premises
When you go the rental route, the ownership of the property always vests with the landlord. However, with a commercial loan, the business or you own the property depending upon under what entity you register it. Not to mention there won’t be any haggling over the rental rates as well.
Easy loan repayments
When you rent out a business property, you also take the risk of rental rate fluctuations in the location, rate changes made by the landlord and other factors. When you opt a commercial loan, however, you know the rates are fixed and there is no fear of volatility in the future. Not to mention the fact that repayment for the loan becomes affordable. Yes, commercial loans have lower rates than most of the usual borrowings such as unsecured loans and overdrafts.
Imagine a scenario. You rent out a business space. Years down the line, you will have added to the company’s expenditure via rent and not gained anything through means of the property. Imagine another scenario. You have bought a commercial business space with the help of a commercial loan. Not only does the property become yours as stated previously, but it also creates a substantial capital gain for you. In fact, it acts as a great investment in addition to serving the purpose of your business.
Earn additional income
How great it would be if you don’t have to pay rent for your commercial space and still make extra bucks out of the property? With respect to the acceptance of your lender, this is totally possible. Any surplus or unused space in your property can be rented out. This is not only extra revenue for you personally but will also help you in your loan repayments.
As a bonus benefit, the payments you make towards your commercial loans are tax deductible as well. No doubt that this will help reduce your business tax liabilities to a considerable extent.
GPS Finance is in the business of finding the best deals out there for our clients. Our fast and reliable services provide you expert support throughout the loan process. If you want
- 5 Apr, 2019
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