KNOWLEDGE CENTER: How a Small Business Commercial Real Estate Loan Can Help Homeowners Plant Their Roots and Reinvest in Their Business [Column] | Business
For many small business owners, finding the right location is only half the battle.
Whether it’s rental contracts, increasing rental costs, or finding a new location if necessary, sifting through options can be tedious and time consuming, and it keeps you from generating sales. and income.
For small business owners looking for permanent housing for their business, a small business commercial mortgage may be the answer.
Benefits of a commercial real estate loan for small businesses
A commercial real estate loan for a small business provides homeowners with financing (from $ 100,000 to $ 1 million at WSFS, for example), for a real estate purchase, allowing them to invest in their business through real estate. while establishing a location with certainty of costs.
Loans have fixed rates and terms, which may vary by lender, and may also include fixed fees.
By helping a homeowner secure permanent housing for their small business, these loans also provide refinancing options to help reduce their monthly payments or the length of their loan, freeing up capital to invest in other areas of the business. .
These options include cash refinancing, which can be a great enabler of a physical expansion of small business ownership to help spur growth.
Additional Benefits of Owning Your Business Home
In addition to gaining cost certainty and location stability, owning the property where your business “lives” can create equity capital that helps provide financial flexibility and additional investment in your business.
Owning the home of your business can also benefit from tax advantages, as you may be able to deduct the annual interest paid on the loan and other expenses associated with owning the property, two huge advantages over renting out. space.
Finally, owning your business property eliminates the headache of rental terms that can limit the amount or type of work you can do on the property to match your true business identity and vision for it. have. You can even rent space in your building, and there are financing options for renovating to support this income-generating approach.
With the benefits to your business finances and physical presence, a commercial real estate loan for your small business could be a great option.
My advice? Speak with your business bank or find a lender who offers different options that best suit your needs, keeping in mind positioning your business for continued growth and success.
Anthony Ryan is Senior Vice President, Director of Small Business Loans for WSFS Bank. He joined WSFS in 2011, bringing with him 30 years of experience in personal and small business banking.