In an economy now largely defined by the rise of start-ups and e-commerce, creating demand for brick-and-mortar stores has become quite the challenge. As a business owner, it’s essential to ride out this change and find an anchor in the changing market. Whether your business is in the retail, corporate or industrial sector, the key to generating innovations is finding the right space to nurture your best ideas.
So where do you go to design your latest product or set up shop to accommodate more customers? Acquiring a commercial building can be a smart investment for nurturing developments in the market, adding a nice finishing touch to your business plan.
See how commercial mortgages are critical to a successful purchase of retail, office or industrial space to pose your business for success:
Owning Trumps Renting
Combined with the downpayment and other capital expenditures required to keep your business afloat, mortgage repayments sound like a daunting additional expense. But come to think of it, without owning the commercial property where your business is set up at, the rental payments or long-term leases you constantly have to make do not guarantee any security.
Aside from constantly making payments for a property without working towards converting it into an asset of the business, the cost of rentals and lease agreements can become highly volatile, depending on market conditions. On the other hand, fixed-rate commercial mortgages make for predictable monthly repayments that can easily be accounted for in regular capital expenditures until such time that your business gains full ownership of the property. You can even choose to sublet any free space to reduce monthly payments and generate additional income to support capital and operational expenditures, such as the commercial mortgage.
Stabilize Cash Flow
Unlike kids saving up for a bike, acquiring commercial property takes much more than emptying your savings account. Plus, that may not be the smartest option, as your business still requires capital support to continue operating.
The good news is, commercial mortgages exist for this very purpose. That is, by taking out a commercial mortgage, you will not run the risk of sacrificing the cash flow of your business. This allows business to run as usual, while enjoying the added benefit of gaining a valuable asset in prime commercial real estate. Plus, you will even have enough room in your budget to furnish your store or office, purchase supplies, and continue growing your business as the increased opportunities for closing in on profit margins support mortgage repayments.
Customize Mortgage Loans
Commercial mortgages come in different shapes and sizes—that is, business owners like you are at liberty to select a preferred lender depending on your needs. Private companies such as Northwood Mortgage™ can accommodate your specific needs and goals for taking out a commercial mortgage. These include choosing between fixed or variable interest rates and customizing an amortization plan according to what your business can support over a given period.
The Canadian Commercial Mortgage Market
Good news for Canadian business owners: Canada has one of the most largely thriving commercial mortgage and real estate markets, placing you in a prime location to select the best investment option according to what your business needs. Valued at approximately $35 to $40 billion annually, the Canadian commercial mortgage market provides various opportunities for retail, industrial and corporate business owners looking to acquire commercial property to grow their business in. This has translated to high recovery rates over time, providing business owners with ample opportunity to grow their enterprise and gain a valuable real estate asset in the process. By investing in Canada’s commercial real estate market, business owners become high-yielding investors in a market that has proven to hold up quite well during the global financial crisis, making it clear that commercial mortgage is a smart, valuable choice in today’s economy.
For more information about commercial mortgages and getting the best rates in Canada, call 1-888-495-4825, or contact us here.