ADVANTAGES OF A COMMERCIAL MORTGAGE Retain your business The first advantage of a i Commercial mortgages that you will retain ownership of your business and your business premises. Raising equivalent advances by using other typical investment channels, may mean that you have to relinquish a percentage of ownership of the business (and thus business premises). A commercial mortgage lender is only entitled to interest on its mortgage, and nothing else (providing repayments are made on time). Capital gain The next major advantage of retaining your premises through a commercial mortgage is that it becomes an asset with the potential to increase in value. Owning property or land is one of the most effective methods of achieving capital growth over the long term, although of course property can go down in value as well as up. No rental instability Commercial mortgage repayment is very likely to be similar to a rental payment on the same property. Rental payments can also drastically increase whereas having a commercial mortgage negates any exposure to such increases unless interest rates rise. This stability allows for much more solid long-term business planning. Lower interest rates When comparing to other types of unsecured loan or overdraft, a commercial mortgage usually carries much lower interest rates with repayments made over a longer period of time. This is an attractive option for some businesses, as it decreases the overall monthly outgoings. Also, business mortgage repayments can be fixed so the business knows exactly how much the cost will be each month. Tax deductible Commercial mortgage interest payments are tax deductible and the net proceeds of the loan are not considered to be taxable income. This can contribute to reducing the overall tax burden of your business each year. Better cash flow management A commercial mortgage schedule is normally set for a number of years, allowing a business to plan its profit and loss, and cash flow management accordingly. A commercial mortgage with the General Finance Centre provides the flexibility to design a payment plan to suit the needs of the specific business. www.ADVANTAGES OF A COMMERCIAL MORTGAGE Retain your business The first advantage of a commercial mortgage is that you will retain ownership of your business and your business premises. Raising equivalent advances by using other typical investment channels, may mean that you have to relinquish a percentage of ownership of the business (and thus business premises). A commercial mortgage lender is only entitled to interest on its mortgage, and nothing else (providing repayments are made on time). Capital gain The next major advantage of retaining your premises through a commercial mortgage is that it becomes an asset with the potential to increase in value. Owning property or land is one of the most effective methods of achieving capital growth over the long term, although of course property can go down in value as well as up. No rental instability Commercial mortgage repayment is very likely to be similar to a rental payment on the same property. Rental payments can also drastically increase whereas having a commercial mortgage negates any exposure to such increases unless interest rates rise. This stability allows for much more solid long-term business planning. Lower interest rates When comparing to other types of unsecured loan or overdraft, a commercial mortgage usually carries much lower interest rates with repayments made over a longer period of time. This is an attractive option for some businesses, as it decreases the overall monthly outgoings. Also, business mortgage repayments can be fixed so the business knows exactly how much the cost will be each month. Tax deductible Commercial mortgage interest payments are tax deductible and the net proceeds of the loan are not considered to be taxable income. This can contribute to reducing the overall tax burden of your business each year. Better cash flow management A commercial mortgage schedule is normally set for a number of years, allowing a business to plan its profit and loss, and cash flow management accordingly. A commercial mortgage with the General Finance Centre provides the flexibility to design a payment plan to suit the needs of the specific business. www.generalfinancecentre.com