PROPERTY ASSET
FINANCE FOR BUSINESS GROWTH
Property/Development finance is a type of finance that can be used by companies to support the construction, renovation or purchase of property for commercial purposes. It provides business with the capital required to develop or purchase a property with the end goal being to generate income.
Businesses can use the funds to cover the cost or purchase for a new property, to cover the cost of construction for building a new property, cover the cost of renovation/refurbishment of an existing property or purchase a property with the intention of renting it out. Some example property assets may include:
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Commercial Development, Purchase of a Property, Refurbishment, Renovation
WHY SHOULD A COMPANY USE
PROPERTY/DEVELOPMENT FINANCE?
1. Access to capital - Property finance provides businesses with capital they need for their purchase/development.
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2. Fixed interest rates - Property finance usually offers fixed interest rates, giving businesses better financial stability and predictability when budgeting.
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3. Flexible repayment - Property finance offers flexible repayment that can be tailored to suit the needs of the business. E.g. longer repayment periods and balloon payments.
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4. Asset backed - Property finance is usually secured against the property being financed, this can make lower interest rates more accessible as lenders have security over the lend.
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5. Improved cash flow - Property finance enables a business to invest in income-generating properties which in time can generate a steady stream of income and improve profitability over time.
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