In business, it is always important to understand what finances are available to you and the different types that you can use to benefit your business. Businesses often have to secure financing whether this is for starting the business, growth or overseeing a challenging period. This post will look at property finance and how it can be used to help your business.
What is Property Finance?
Property finance can be a smart small business funding solution that sees you secure the loan with residential property, commercial property or a property portfolio. Secured loans can be easier to qualify for as there is less risk for the lender, which can make it a great option when you are in need of capital. In addition to this, you can benefit from better business loan rates and the repayment terms for property finance are usually flexible and can be spread over just a few months or several years.
What Can Property Finance be Used for?
One of the main reasons why property finance is a great option for entrepreneurs is that it can be used in many different ways. As the loan is secured by a high-value asset in property or a property portfolio, you are able to take out large sums of money for your business. This means that you can use property finance to cover startup and ongoing costs, to open a new premises, for growth, working capital or to cover the costs of a management buyout just as a few examples.
Eligibility
To be eligible for property finance, you will need to be a business of any age with commercial or residential property that can secure the loan and you must be registered in England or Wales. In terms of the required documents, these usually include the last 3 months worth of business bank statements, a record of recent business accounts and a cash flow forecast and business plan if you are a startup.
It is easy to see why many business owners turn to property finance when they need a loan for their business. Whether this is to start a new business venture, grow, overcome a challenging period or for a management buyout, property finance can often be the best solution as it is a secured loan which means that it is easier to qualify for and you can benefit from better rates than an unsecured business loan. Eligibility and the process of receiving funding can also be easy and straightforward with property finance.