Starting a new business is a big financial undertaking. One of the big expenditures of any business is the space needed to run and operate it. You may choose to rent out a space, but the rental rates may be too expensive in your area. Luckily, it may be possible to buy a property for the venture and pay less for the loan than you would for rent. Here are a few options available for commercial property financing.

Traditional Mortgages

If you have a decent credit rating, you may be able to obtain a mortgage from your bank. You could also go to other mortgage lenders for the loan. You may choose to take this mortgage in your own name or in the business name. The important thing will be to get an interest rate that will mean a lower monthly payment than what rent on the place would be.

Small Business Association

The Small Business Association may be able to give you a loan on the property. You will need to provide them with a complete business plan that will include researched income projections. The SMA provides property loans for people who already own a business for the most part. However, with the right business plan and a good credit history, they also loan money to first-time business people. These loans are backed by the government.

Business Line of Credit

If you have already started the business using a rental place, you can apply for a line of credit to buy the property. This type of loan will require you to only pay the interest on the loan until you have the funds to start paying on the principle. You will be able to do any building or renovating without the worry of having a large monthly payment while doing so. Once the business is up and running, you can pay off the principle. Of course, once you have paid off any of the principle, you can always use that money again, if necessary.

Take the time to have a proper business plan with projected financials prepared for any mortgage lender. You may want to pay a professional financial advisor to prepare this. Once you have secured the mortgage, you can always rent the place out if you find the business isn't prospering. If you rent, you may be stuck paying the monthly payment for the duration of a long lease, even if you close the place. Investing in real estate is never a bad idea.