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Commercial Mortgage
Benefits
Ownership
Instead of raising funds by selling an interest in your
property or the business to an investor, you retain complete
ownership of both. The lender is only entitled to an interest
return on the mortgage, not a percentage of ownership that an
investor would expect. Furthermore, the lender can only
exercise the right if you default on the mortgage. You retain
all the benefits of ownership in an asset that has the
potential to appreciate in value and in many cases saves you
money when compared to leasing.
Cash Flow
A mortgage gives you access to capital with minimal up-front
payments and the flexibility to design a repayment plan that
suits your needs. Mortgage schedules are preset, making cash
management more predictable. In addition to providing need
cash flow that is so important in business.
Maximize Financial Leverage
Financing your property purchase with a mortgage allows you to
use your cash flow for other pressing needs.
Tax Benefits
Interest payments on your mortgage are tax deductible and are
made with pre-tax money. Purchases financed with profits, in
contrast, are, made with after-tax money.
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