2 min read
Why owning can beat renting
Buying the premises you occupy converts rent — money that leaves the business — into equity you build. Over time, and where the numbers work, ownership can strengthen the balance sheet.
How it's funded
Commercial property purchase is usually funded differently to a working-capital loan, often over a longer term against the property. For fit-out or associated costs, a business loan can play a part.
Take specialist advice
Property finance has its own considerations — term, structure, tax. Get specialist advice and model the full cost against continuing to rent on your cash-flow forecast.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.
Frequently asked questions
Should I buy the premises I rent?
When the numbers work, buying converts rent into equity and can strengthen the business over time. Commercial property finance is specialist, so take advice and model the full cost against renting.
How is buying commercial premises funded?
Usually through longer-term property finance secured against the building, which differs from a working-capital loan. A business loan can fund associated costs like fit-out. Take specialist advice on the structure.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.