Getting the needed money to acquire or build your property can cause a lot of headache. There are many ways to funding your property with their specific conditionalities but it’s confusing knowing which of them is the right one for you or your business.
We know what you’re going through which is why we’ve written this article to help you out. As North Wales Solicitors with years of practice in providing financing of different kinds, this article will guide you on how to choose the best financing for your situation.
FUNDING OPPORTUNITIES FOR YOUR PROPERTY
You have to know how much money you need and how as well as when you will be able to pay it back. Your needs will determine the type of loans appropriate for you. An instance is the amount you will need for a fixed property which will require you getting a larger loan for a longer duration of time than one you will require for new equipment which can be facilitated by a business loan.
1. BUSINESS LOAN
This is appropriate for you if the amount you need is £25,000 or under. This is categorized as a small business loan and is useful if your business needs additional working capital, new business tools or is looking to expand. These loans come in two types based on their duration, short term and long term. A bank or building society can provide these loans. They usually require you to provide your business plan along with your financial records.
2. BUSINESS MORTGAGE
This is for the purpose of funding a property for your business or trading purposes. You can put money into an appropriate property for your business needs and use it in any way advantageous to you. A business mortgage could enable you optimize your business profits over an extended period of time as the larger the loan facility taken over the long term, the more flexible your interest rate is in contrast to a business loan.
3. BRIDGE LOAN
These are loans that are used to finance a property for a short period of time. It’s useful when there’s a disparity between the funds needed for the property and the time the expected cashflow to cover the property is in place. Only specialty institutions offer these loans and they range in the amount accessible and their interest rate.
Compared to a longer term mortgage, these loans attract higher interest rates but it’s useful in certain scenarios. A bridge loan means you don’t have to dispose of your present business property to enable you acquire a new property which provides you and your business with room to be flexible.
If you need more clarification or you have other questions not covered here, get in touch with a financing professional who will advise you on the best course of action appropriate for you. He/she could even get you interest rates better than what man online financing sites provide.
Thank you for going through this article. Best of luck in getting your financing.