Kentucky business owners should weigh their options in terms of renting or buying commercial properties for their company. The budgetary restraints of a company are a major consideration when approaching this concept. If you wish to review your options more fully for Commercial Property Lexington KY today, you should contact the Coleman Group and schedule an appointment.
Should You Rent or Buy
The first factor you should review when making the decision to buy or rent a property for your business is your credit. While it is possible for you to buy a property with a credit score as low as 580, you could receive a higher interest rate overall. This higher rate could present increased costs that may present a hindrance for you initially. Higher initial costs could prevent you from acquiring equipment you need to operate your company at its beginning stages.
Affordability
Lenders are subject to further restrictions when offering commercial loans. These lenders must determine affordability based on the available capital and overall profits generated by the business. The borrowers must prove that they can make timely payments by providing evidence of income for the last year. If the company is a start-up, it is necessary for the owner and investors to present a consolidated effort to secure the property. However, with start-up companies that are owned by one or two individuals without vast financial resources, affordability is determined by their income from other sources such as current or previous jobs.
Limited Resources
Prospective commercial property owners who have limited resources may face difficulties when attempting make a purchase. A lender or financial adviser could present them with a plan to acquire a permanent location through a lease purchase. This option allows the business owner to secure a location through a lease with the option to buy. In these cases, the owner acts as a landlord who will allow the business owner to begin payments towards ownership after a predetermined amount of time.
When determining if you are ready to buy Commercial Property Lexington KY today, you should review your finances and establish whether you have adequate resources. New lending laws may work against you in some cases. Your first step to making these distinctions is to schedule an appointment with a realtor who understands the requirements for buying in today’s market. To know more, visit website.
