13-06-2007
SMEs would benefit from commercial property ownership
Small to medium-sized enterprises (SMEs) would benefit from owning their own commercial property, it has been claimed.
According to Stuart Woodward, a business consultant from White Rose Finance, although renting commercial property may benefit SMEs in the short-term, over a longer period ownership would be beneficial as a way of generating equity.
Indeed, according to Mr Woodward, any SMEs renting over a longer period would only be able to raise additional funds if a domestic dwelling was owned.
"If you've got some property then you've got some equity; you can arrange loans against them," said Mr Woodward.
"If you're only a tenant then the odds are you'll be unable to raise additional finances if and when you require them," he added.
Simply Business offers a commercial mortgage service and for companies that are in need of a regular cash flow solution rather than a single injection of cash, invoice finance services are available.