How Owning a Commercial Property Can Help Get Access to Extra Funds for Business Growth and Expansion?

How Owning a Commercial Property Can Help Get Access to Extra Funds for Business Growth and Expansion?

By January 27, 2023 January 3rd, 2024 Blog

Owning a commercial property or industrial property can be a smart investment for businesses looking to access extra funds for growth and expansion. Here are some ways that owning a property can help a business secure funding:

1. Collateral for loans:

When a business owns a property, it can use it as collateral for a loan. This can make it easier to secure a loan and can also result in more favourable terms, such as lower interest rates. It is an asset that a borrower pledges to a lender as security for a loan. If the borrower defaults on the loan, the lender can seize the collateral and sell it to recover the amount owed.

2. Equity financing:

Owning a property can also help a business raise funds through equity financing. If a business owns a property that has appreciated in value, it can sell a portion of that property to investors in exchange for equity in the business.

This can be an attractive option for businesses that are looking to raise money without taking on additional debt.

Equity financing can be beneficial for several reasons. First, it does not require the business to make regular loan payments, which can help to reduce financial stress and provide greater flexibility. Second, investors may bring valuable expertise and contacts to the business, which can help to fuel growth and expansion. Finally, equity financing can allow a business to retain greater control over its assets and operations, as compared to taking on additional debt.

4. Increased flexibility:

Owning a property can give a business more flexibility in terms of financing options. For example, if a business needs to raise funds quickly, it can use a property as collateral for a short-term loan.

5. Appreciation in value:

Over time, commercial and industrial properties tend to appreciate in value. This means that owning a property can be a good long-term investment that can help a business access additional funds in the future.
Of course, there are also risks associated with owning a property. Property values can fluctuate, and owning a property can be expensive and time-consuming. However, for businesses that are looking for ways to access additional funds for growth and expansion, owning a commercial or industrial property can be a valuable asset.

About Limra Assets

Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.

If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.

Disclaimer:

It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.