5 Ways to Finance Your Office Building

Having your own office space means more financial freedom and total control of your premises. You don’t have to stress about the chances of your lease getting renewed and the possibility of changing your business location if things don’t work. You’ll generally stay away from issues of leasing a building for a business.

But moving to your own office space is a huge financial decision and sometimes you’’ need some financing to make this possible. Well, many options can come to your aid to finance your business building. You need to find the most appropriate one depending on your situation.

This article outlines five different ways that you can use to finance your office building. Read through and pursue the most appropriate one for your business.

Business Lending Startups

Financing your business is becoming easier every day with the addition of third party lenders gracing the market. These lenders are willing to provide loans to small businesses across a broad industry scope. These startups have low to medium interest rates; hence you won’t have an expensive loan to finance.

One good thing about these financial lending startups is the speed at which they remit loans to businesses. The lenders will ensure minimum paperwork, fast approval, and easy access to your funds. Most of the time, you’ll only count a few days to finish the loan process and get your funds ready for use.

But like other traditional lenders, you need to have an excellent credit score to get your loan application approved. There are also moderate interest rates attached to the funds. You need to consider all these before making an application to get financing for your business building.

Equipment Financing Options

Another way to finance your business building is through getting financing for your building equipment. These types of lending are out of monetary terms and are available for construction professionals. With this type, lenders will lease construction equipment such as trucks or bulldozers, and you pay as you go.

One big advantage of this type of lending option is that you can get your construction equipment on hire purchases. You pay an initial amount for the expensive equipment, and then pay the rest in installment. This is one of the most affordable ways to get costly building equipment.

All you have to do is prove to the lender that you’re in a position to pay the rest of the money after making the initial payment. You’ll have access to the equipment and continue using it as you pay the remaining balance. Equipment financing can be excellent lending options to kick start your construction work.

Get Investors to Finance Your Business

If your business is stable, you won’t have a hard time getting investors who’re willing to work with you. But even as a startup, you can also get early-stage investors willing to take a chance with you. You can find angel investors across different industries to work with.

To find these investors for your commercial building, search the AngelList construction section. Or, you can search titles like a construction angel investor in LinkedIn. You can also ask those who’ve worked with search investors before to help you find one.

Most investors here are former construction or field savants. They will finance not only your commercial building but also mentorship to help you succeed.

Angel investors also come with their downside. The first one is that you’ll find it hard getting an investor or the funds in the first place. Secondly, you’ll need equity or a stake in your company to access the loans, which means someone will have partial ownership.

Get Business Term Loans

Business term loans are another savior when looking for financing for your commercial building. These kinds of loans are better than bank loans because you can easily qualify with fast approval rates. They’re the best types of loans for those who need urgent financial aid.

Like other loans, business loans also come with their terms and conditions. The interest rates vary from lender to lender and also depending on the situation. Before you apply, take your time to do some research about these loans and weigh your options.

Bank and SBA Loans

When it comes to financing your project, you can never go wrong with banks or SBA loans. Thanks to their wide availability, they’re also the most popular types of loans that you can use to fund your business building.

These loans have many amazing features that make them ideal options for your construction work. They come with the best terms, high loan amounts, and low-interest rates.

But like any other lending options, banks, and SBA loans also come with their downsides. They have very strict approval terms making these loans very difficult to acquire. They subject lenders to strict credit and personal requirements, which many businesses find it hard to meet.

The payment terms for the loans are also very strict. In case your business undergoes a financial difficulty, or it closes down, you’ll still have to pay 85% of the loan from your pockets. Well, if you can keep up with the terms and qualify for the best, they can be the best option for your construction project.

Choose Your Preferred Option and Start Building 

Don’t wait to have enough money in your pockets before you can start building your own office space. There are several lenders willing to finance your business construction from start to finish as long as you can afford it. You can even combine two different lending options to see you through the project.

However, don’t be quick to get any form of financing without any prior research. Dig deep into the options available at your disposal, see their requirements, and decide whether they’re the best or not. You can also ask financial experts to help you choose, depending on your industry and situation.

Don’t forget to come back to this site for more financial guides and essential tips for running your business. We always have something educational to help you out.