When your business is growing, you want to keep up. You also want a more professional appearance, and nothing says that more than a brick-and-mortar office space that local consumers can visit. You will probably need to visit a lending institution to get a business building loan. Here are three ways you can use that loan to get a decent office space.
Buy Property and Park a Trailer on It
You can use business building loans to buy a piece of property and park an office trailer on it. This works quite well for contractors, but you might have to "fancy it up" a bit for other types of businesses. Still, it is a relatively less expensive option than buying property and having to remodel the building that is already on the property.
Buy Property With a Pre-Existing Building and Remodel the Building
This is a favorite option for many new start-up and intermediate businesses. No actual construction is involved, and the building is already present on the property. If you are lucky, you can find such a property where the remodeling would not require an extensive gut-and-redo. Your building loan would cover the purchase of this property and some, if not all, of the remodeling costs. Be sure to get a remodeling estimate on the property before you apply to the lender for the money you need to complete this project.
Completely New Construction on New Property
The final (and usually most expensive) option is to buy a piece of property and build your dream office from scratch on that property. The loan may or may not pay for the purchase of the property, depending on the lender with which you choose to work. However, your loan amount should include the total estimated cost of building your business building, plus a couple thousand extra, in case the cost of the project goes over the estimate for some reason.
What a Business Building Loan Does NOT Cover
Just so you understand what a building loan covers and does not cover, clarification is provided. You cannot take out a building loan for office space that already exists and is owned by someone else. If the property is provided to you on a rental basis, a building loan does not cover monthly rental costs. Unless you have express permission from the proprietor to remodel, you cannot use a business loan to remodel this type of business/commercial property either.Share