Leveraging Commercial Mortgages For Business Expansion

Running your own business can be tough, especially if you want to expand and you don’t have the money for such a thing. One of the best methods to gain the funds that your company needs for expansion is definitely through accessing commercial finance and when possible through commercial mortgages.

Commercial mortgages can be used for a wide range of things within a company, from purchasing business premises to developing property, extending the current premises or, in some situations, they can be used for commercial investments as well.

Usually, commercial mortgages need to be repaid within 10-30 years, depending on the loaned amount and other important aspects of the loan agreement. There are lenders that offer commercial mortgages with short repayment periods, but most of the time these will come with a fixed rate.  They come with a variety of benefits when compared to rental properties, and we are going to showcase those advantages in the rest of this article.

First, a major benefit of commercial mortgages comes from the fact that you can keep ownership of the property you purchase with such a mortgage. While other types of investment usually require you to renounce the ownership or split it with someone else, this type of funding helps you retain total ownership without a problem.

On top of that, a commercial mortgage also provides the opportunity for capital gain, since it actively contributes towards capital growth, and this is something very useful for any business.

Commercial mortgages aren’t subject to the rental fluctuations, instead you need to pay the amount you agreed upon, without any changes. If you have agreed to a interest rate that is not fixed there will obviously be some fluctuations in amount of interest due. Generally though fixed rate commercial mortgages provide a lot of stability for the business, something that makes future planning a lot easier.

Most commercial mortgages also offer lower interest rates than other types of commercial loans, something that of course leads to lower costs per month. This means that managing finances is a lot easier and more accurate as well, something that provides the basis for truly astounding results in the future.

Another benefit comes from the fact that the commercial mortgages come with interest payments that are tax deductible with obvious benefits.

With the help of commercial mortgages you can also improve the cash flow management of your business, since you can plan for profitability instead of having to deal with issues such as a shortfall in money supply for example.

Remember also that once you purchase a property you can sub-let some of it and indeed a commercial mortgage lender may see this as beneficial to your application if it is part of your strategy.

As you can see, commercial mortgages come with a variety of benefits for your company. From improving the cash flow to providing tax deductions and a good set of interest rates, these commercial mortgages are very helpful for any business, so if your company doesn’t have the necessary money to expand and evolve, contracting such a commercial loan might be the perfect solution!


About the Author: Dominic Lambrinos


Dominic Lambrinos is a financial expert who provides professional business finance solutions, commercial financial engineering, expert review of financial submissions, negotiation, equity raising, business sales, and trade financing. Dominic is also a sought after finance business trainer, and accomplished public speaker.

Under Dominic’s guidance , his team can also prepare professional financial submissions, review financial statements, provide financial accounting, business administration, development of information systems, marketing and sales skills, computer and Internet sales skills.