Published on : 01 June 20203 min reading time
To start a brand new business in the city centre to develop its turnover or as part of its development, a company may need financing to buy commercial premises. Indeed, a multitude of solutions are possible to finance the acquisition of premises. In order to carry out a purchase project within your budget, it is advisable to consider the location of the premises and its surface area. Find out what steps to take to make your purchase a reality.
In the case of a direct purchase by the company
In order to have a business premises, it is essential to draw up a business plan. The first option for purchasing business premises is to finance the business with the company’s own funds. In other words, it uses its cash flow and the premises directly constitute its assets. By this procedure, the company will not have any debt problems. It can monitor its activities while financing new premises. It is a solution par excellence that brings only advantages and is to be adopted for a company wishing to make its new commercial premises an incomparable strategic asset.
Concerning an acquisition with debt
Then, if you plan to buy walls of a commercial premises, it is also possible to take out a loan. The latter makes it possible to finance all or part of your acquisition. By the way, many companies opt for this solution. The funds loaned from banks and various organizations make it possible to keep the company’s cash flow. Monthly repayments facilitate better management of the company’s funds. To do so, you can contact a financing broker to help you in your choice and ensure the success of your project.
Understanding the steps involved in buying business premises through a SCI
Finally, a company can finance business premises by creating an ICS in which the company automatically becomes an associate. In this case, the business premises to be purchased are held indirectly. This is therefore the opposite of a direct purchase using equity capital. This financing solution is more chosen by companies that are part of a group of companies. Profits go to holding companies. If your company is therefore part of a holding company, you benefit from tax-optimized taxation. If not, this financing solution will be impacted by taxation. On this point, the steps for a purchase of commercial premises and its financing depend on the situation of each company and other development projects envisaged.