COMMERCIAL FINANCE
Several advantages make owning commercial or business property a viable prospect for small businesses . These include the benefit of asset appreciation , enjoying full control over interior design and renovations , security of tenure and avoiding aboveinflation rent hikes . However , it is important to note that the process of acquiring funding for business property involves more rigorous vetting procedures and due diligence than applying for residential property .
In general , small business owners need to ensure that their application will inspire confidence in the financier , providing assurance that the purchase is financially feasible both in terms of the future value of the asset and the track record of the business purchasing the business property .
Financiers interrogate funding applications on three fronts : the state of the client ’ s business , the viability of the transaction and the value of the property being acquired . Research and
118 NOV 2022 SA Real Estate Investor Magazine