For many small business owners, finding the right location is only half the battle.
From lease agreements and rising costs of rent to finding a new location when necessary, sifting through the options can be overwhelming and time consuming — and it takes you away from driving sales and revenue.
For small business owners looking for a permanent home for their business, a commercial real estate loan for small businesses may be the solution.
Advantages of a Small Business Commercial Real Estate Loan
A commercial real estate loan for a small business provides owners with funding (from $100,000 up to $1 million at WSFS, for example), for a real estate purchase, enabling them to invest in their business through real estate while establishing a long-term physical location with cost certainty.
The loans come with fixed rates and terms, which may vary by lender, and may also include fixed fees.
By helping an owner obtain a permanent home for their small business, these loans also offer refinancing options to help lower their monthly payments or loan term, freeing up capital to invest in other areas of the business.
These options include cash out refinancing, which can be great facilitators of a physical expansion of a small business’ property to help drive growth.
Added Benefits to Owning Your Business’ Home
In addition to gaining cost certainty and location stability, owning the property where your business “lives” can create equity that helps provide financial flexibility and additional investment into your business.
Owning your business’ home can also reap tax benefits, as you may be able to deduct annual interest paid on the loan and other expenses associated with owning the property, two huge advantages over leasing space.
Finally, owning your business property removes the headache of lease terms that may limit the amount or type of work you can do on the property to match the true identity of your business and the vision you have for it. You may even be able to lease out space in your building, and there are financing options for making renovations to support that revenue-generating approach too.
With the advantages 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 seek out a lender that offers different options that best fit your needs, with an eye on positioning your business for sustained growth and success.
Anthony Ryan is Senior Vice President, Director of Small Business Lending for WSFS Bank. He joined WSFS in 2011, bringing with him 30 years of Retail and Small Business Banking experience.