Commercial Industrial Property - How It Aids Business Refinancing
What's it werth?
Find out what's really going on in the Commercial Property Space with Jason Werth, our MD and Commercial Property expert.
Read Jason's views on:
- The current Commercial Property market
- Future property values
- Market trends and reports
- Sector & Geographical analysis
If you want to stay ahead of the curve in Commercial Property, CLICK HERE and visit Jason's blog NOW!!
Commercial industrial premises cover a wide spectrum of property types, being put to a great variety of uses. It can be readily classified according to function - either storage and distribution units, serving the retail and just-in-time manufacturing sectors, smaller industrial units for light manufacturing activities, and larger premises geared towards heavy industrial and engineering purposes. Even factories and technology units fall within this sector.
But whatever type of commercial industrial properties you own, they do all have one thing in common- they all have an intrinsic equity for their owners. This equity is a combination of the initial investment of the property owner, and the capital value appreciation, since the commercial industrial premises was acquired. Unlocking the value of that equity may be something that you are considering.
Maybe you are seeking to hire more staff, or invest in new equipment, because increased demand is justifying an expansion. Possibly you need funds to add to your cash pool to provide more operating room for cash flow fluctuations. Or maybe you are looking towards a financial restructuring that will seek to pay off expensive debts.
In all cases, it is increasingly common to find that raising finance from the traditional sources, such as banks, is difficult in today's market. Which is why you may be considering unlocking the value of your commercial industrial premises itself. If so, which avenues would make most sense for you, bearing in mind the current market conditions?
The most obvious option is to turn to a commercial broker to raise funds via a mortgage on your commercial industrial premises. They are widely recognised as agents able to assess your particular requirements and bring in the best qualifying mortgages. You also avoid having to handle the complexities of raising finance yourself. But there are important draw backs to consider when using brokers for your refinancing, especially in light of current market conditions.
First off, a commercial broker must bring credit suppliers to you - they do not have access to funds themselves. This makes them very susceptible to the tight credit supply prevalent in the market today. Your commercial broker is likely to find it hard to get you the mortgage you need on your commercial industrial premises, at a reasonable price and even if they think they have secured you terms, there will be several layers of credit approval required by the lender.
Secondly, broker arranged mortgages can be costly - brokers do charge fees, as much as 2% of the value of the loan required, and the commercial industrial mortgage they supply will require large loan interest payments. Given that interest rates are rock bottom, and only likely to increase, this may become an increasingly expensive outlay for getting hold of your property's equity.
However, there is an approach to commercial industrial refinancing you can take to avoid these draw backs. SellMyCommercialProperty are commercial property experts, who have significant investment monies available. Our team is experienced in sorting out so called 'sale and rent back' deals. These can allow you to realise your equity fast- your commercial industrial premises will be purchased, at a fair price, which SellMyCommercialProperty will then lease back to you, on a long term basis.
This could be completed much more readily than going through a commercial broker, and you are guaranteed to be able to get your equity released with no fees. If you get in touch with SellMyCommercialProperty today, we can show you how we can enable you to raise equity on your commercial industrial premises fast.
- Sell My Distribution Unit - A Guide to Selling Industrial Units
- Sell My Warehouse | The Secret To Fast Industrial Property Sales
- Industrial Property Faces Drop in Capital Value - Time to Sell?
- Sell My Factory | A Simple Guide to Selling Industrial Property
Sign up for our free newsletter and get the latest news and views on the Commercial Property Market straight into your inbox