Our research and experience have shown us that in the initial stages of securing financing for commercial properties , one of the major pain points for small businesses is accumulating enough capital for a deposit . A deposit-free funding option may be more viable and accessible . In these cases , SME owners need to understand the conditions of a deposit-free loan and how it differs from traditional financing .
As an example , Business Partners Limited ’ s offerings are tailored for SMEs who are considering purchasing commercial property . One available option is a transaction that offers an advance of up to 100 % of the financing required , subject to conditions relating to the nature and usage of the property . These deals may involve an increased cost of funding to obtain the finance but allows the Business to invest cash flow into the operations which will in turn stimulate growth and increase profits .
Owning their own business premises , developing residential complexes for resale or student accommodation is within reach for many SMEs provided they find the right financier . We encourage SME owners to explore their options , review their budgets and weigh up the long-term benefits of different funding options . Investing in commercial property can be a powerful next step for an entrepreneur , so it ’ s important to make a well-informed decision based on your current reality and your projections for the future .
Shane Padayachy Area Manager Business Partners Limited
SA Real Estate Investor Magazine NOV 2022 121