As a business owner, you understand the need to utilize your resources to the best advantage. If you could use some money to take care of some sort of business-related project it pays to talk with a Toronto mortgage broker and see what can be worked out. What could you do with the money from a commercial mortgage? Here are four examples to consider.
Purchase a Commercial Site
Maybe it’s time to expand an existing operation. You lease space right now, but that approach doesn’t offer the space or the other benefits that it did in the past. Since you’ve found a commercial site that would require minimal modification to house your operation, why not become a property owner? The money from the mortgage will easily take care of the purchase and provide the funding for those modifications.
Reorganize Your Business Debt
You’re getting by in terms of paying all the bills on time, but it does put some stress on your cash flow. It would be nice to combine some of the debts into a single obligation that’s more manageable. That’s where the idea of a commercial mortgage comes into the picture.
Assuming you have enough equity in the property, it’s possible to pay off multiple debts using the funds from the mortgage. Along with streamlining your Accounts Payable functions, the interest rate on the mortgage is likely to be lower than what the business is paying on those other debts. That means you’ll end up retiring the debt sooner and freeing up more of your cash flow.
Update Your Machinery or Office Equipment
Even the best machinery or office equipment eventually needs replacing. When that happens, how will you go about covering the cost? One approach is to use the money from a mortgage to get what you need now and pay it off in manageable monthly installment payments, You’ll often find that the best rates for commercial mortgage loans are more competitive than the in-house financing you can get from various vendors. Over time, opting to use the equity in your business to buy that new equipment will save quite a bit of money.
Fund a Marketing/Advertising Campaign
Your marketing efforts have worked well up to this point, but it’s time to kick things up a notch. That means spending more money to advertise your business using the right combination of offline and online strategies. Where will the money come from without relying too heavily on the company reserves?
You could design a plan that has a good chance of working and use the money from a commercial mortgage to cover the cost. It will be easy enough to make the monthly payments as the campaign ramps up and begins to generate more revenue. In the best-case scenario, you’ll find that after a few months the increased business volume is covering the cost of those payments.
The bottom line is that the right commercial mortgage can help a business owner in a variety of ways. Do you have something in mind that would position your company for growth? If so, check into this financing method. It could end up being exactly what you need.