Today, there are plenty of different ways to start and run your own business. We focus on property. How will you fund it?

Depending on what your company is going to do, you could even run it from your own home or garage, using drop shipping services to deliver products to customers, or selling services online.

While some entrepreneurs can launch their company without having to worry about real-estate, many others will need a business property to ensure ongoing success and growth. A business property can show customers that you deserve to be taken seriously and act as a hub of innovation for your employees and team members.

So, how do you afford to invest in something as expensive as real-estate when your business is only just getting started? Here are a few options to consider.

1.    Start with Savings

It would probably take forever to save up and buy a business property on your own without any additional investment or support. However, that doesn’t mean you can’t take some of the strain off your shoulders by building a savings account in advance. If you’re thinking of launching your own business in the next five years, don’t wait until you’re ready to leave your job to start saving.

The quicker you start putting money away from your regular income into your entrepreneurial dreams, the faster you’ll reach your goals. The more you can put into your business from your savings account, the less debt you’ll have to pay off in the long-term. Additionally, your savings can give you a valuable contribution to put towards down-payments and deposits on real-estate. You can always start your business at home, and use the money you save in the initial years towards your real-estate deposit too.

2.    Look into Grants and Community Schemes

Just like with your savings, you may find that it’s challenging to track down all the money you need for your business real estate using grants and gifts alone. However, it’s a good idea to look at what you might be eligible for when you start developing your business plan. You’d be surprised how many small business grants are available, depending on the nature of your business.

The hardest part of using grants and community schemes to your advantage is finding out which ones you’re eligible for. Consider speaking to experts in the government if possible or doing as much research as you can online when you’re still in the initial stages of planning your company. Most grants won’t cost you anything to apply for, so it’s worth a try, even if you think your chances are slim.

3.    Consider a Commercial Mortgage

A commercial mortgage is probably the best way to make sure that you can access all the money you need for your business real-estate. Just like a traditional mortgage, a commercial mortgage allows you to buy an expensive building, and pay what you owe over-time, with interest. Remember, you will be required to have some kind of deposit if you want to make sure that you’re going to get a good deal.

It’s much harder to be approved for a business mortgage than a personal one. That’s why it’s so important to make sure that you shop around and find the best option online with a comparison website. Additionally, keep in mind that only loans of up to £25,000 for businesses are unsecured in the UK. If you want a commercial mortgage that’s bigger than that, then your lender will take the property you’re purchasing as security for the loan.

Usually, you’ll need a cash deposit of at least 30% of the price of the building. If you don’t have that much cash to offer, some lenders will be able to take additional securities.

4.    Try Crowd Funding or Peer-to-Peer Lending

Crowdfunding is one of the more recent options that companies use to raise capital for their business. Usually, with crowdfunding, you’ll need to give people something in return for their money. Which means that it’s very difficult to get support for business real-estate this way. The chances are that most of the donations you’ll get towards your financial goals will come from friends and family, which negates the point of using a crowdfunding service in the first place.

If you’re interested in modern funding options but crowdfunding doesn’t seem like the right option, there’s also peer-to-peer lending to consider. A peer-to-peer lending site puts you in touch with individual investors that will give you the money you need without any middlemen like banks and building societies getting involved. Sometimes, these loans are more expensive, but they’re also more forgiving of things like poor credit histories.


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