Buying your business premises or offices in which your business is located is often interesting for a professional. However, funding can sometimes be problematic.
Is it possible to combine real estate loans when one is a business ? What types of loans are available for a professional property loan ?
In order to carry out a project to purchase a professional property, the solution consists in using different sources of financing.
The multiple mortgage
Just like the individual, the company has the right to combine real estate loans to carry out its project. This possibility is all the more valuable because often the borrowing of a business must not exceed 15 years and the borrowing rate for the purchase of a commercial property is frequently more than a loan made by an individual.
Building a file to combine real estate loans
In general, it is advisable to have a contribution equivalent to about 20% of the total price of the commercial premises or offices.
In addition to this contribution, the Banque de France rating is also an important criterion that can be considered when applying for a loan. This quotation is expressed by a letter and a figure, which represent respectively the company’s turnover and its financial strength.
The debt ratio and the self-financing capacity are also taken into account in the examination of the file.
In addition, a long list of documents must be presented to the banks to which the company wishes to turn to combine real estate loans. Balance sheet for the last three years (or forecast balance sheets if the company is being created), detailed presentation of the situation and bank statements are among the essential documents to be attached to the file.
Why combine real estate loans?
Choosing to finance his mortgage from various sources may have the advantage of enjoying lower repayment rates, depending on the type of loan contracted and the lending bank establishment. The tax and financial implications may also vary depending on the funding method used.
Accumulation of mortgages is also a way of preserving its cash flow over the long term: if a bank withdraws part of the loan, it may be better able to help the company on other projects . This is an important security for a company, especially if it is under development.
Choosing Your Professional Real Estate Loan
Several solutions exist to acquire a commercial space or offices for his company.
Real estate leasing, ideal professional mortgage
This solution consists in having the real estate purchase the choice of the company by a banking establishment. The latter then leases the business premises or offices to the company, which has a call option.
With real estate leasing , the company can deduct rents from its expenses, which is an attractive tax advantage.
Real estate loans thanks to public aid
Some organizations offer financial support to companies. OSEO, for example, makes available to the professionals a mortgage called Prêt à Moyen or Long Term. This loan is shared between this organization and a conventional banking institution.
Interest-free repayable territorial aids are also available in many regions, depending on the real estate project and the sector of activity.