There are many advantages to investing in a commercial property and ultimately it helps to secure the financial future of the business. Rarely will a company have enough free cash to complete a purchase of this scale, however fortunately there are a number of excellent business finance solutions available.
Commercial Mortgage
A commercial mortgage will enable a business to borrow money to complete the purchase of a property. A set amount of money is secured and repayment is made over an agreed term with interest rates applied to the final sum to be repaid.
Equity Release
When a business takes out a finance deal, they can slowly build up a healthy cashflow. This equity can then be used to either refinance an existing deal or to set-up a new commercial loan agreement.
Bridging Finance
Bridging finance provides a short-term solution for relevant property purchases. The term bridging applies because it fills the gap between the selling of one property and the purchase of a second. Rather than wait for property 1 to be sold a business can proceed immediately with the purchase of property 2 and use a bridging agreement to finance the deal.
Development Finance
A business looking to either fully refurbish their existing property or to construct a brand-new facility can look to utilise development finance. Typically, this will be a short-term agreement between 12 to 24 months which can be used to kick start the new property project.
Here at NGI Finance, we have broad experience in helping our clients secure property finance on a diverse range of projects. Recently we have worked with a private gastro pub owner who purchased the freehold license from an existing landlord and will now be looking at additional premises. Thanks to commercial mortgages the client has built an excellent brand and will own a series of gastro pubs throughout the Cotswolds.
Other projects include a bridging loan to the value of £900k which allowed a charity to invest in a new building. Further afield we have also assisted with the purchased of two shops in Cumbria which had the added benefit of two residential flats located above the commercial outlets.
If you are looking for any help in regard to property finance, then our team would be happy to help. To find out more please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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