Opting for a commercial building mortgage can provide significant benefits for you and your business. These financial arrangements offer improved cash flow management and increased financial flexibility while allowing you to build credit for yourself and your business. Here are six of the most important advantages of obtaining a loan for the purchase of commercial property in the modern real estate marketplace.

Establishing Your Corporate Credit Rating

Man checking corporate credit ratingIf you are just beginning your business ventures, a commercial mortgage can help you establish a credit history and build your credit rating more quickly. Even if you already have a solid record of payments and prove to utilize financial resources responsibly, your commercial building mortgage can provide added evidence to creditors of your ability to meet your obligations promptly. This can allow you to enjoy better terms and interest rates for your future financial endeavors.

Investing in Your Future

In most cases, the payments you make towards your commercial mortgage allow you to build equity in the property. This represents a significant investment in your financial future and can even provide you with added sources of cash for when you need it most. By trading in your rent or lease payment for a mortgage payment, you can acquire a valuable asset that can help you build a brighter financial future for yourself and your company.

Managing Your Cash Flow Situation

demonstration of cash flowFixed-rate commercial mortgages can allow you to predict your monthly expenditures more accurately. Commercial lease payments can increase significantly from year to year. By contrast, fixed-rate mortgage payments typically stay the same, allowing you to plan more efficiently for future investments. Additionally, you can sometimes tap into the equity accrued in your commercial property to manage one-time expenses or to finance expansions to your current investment portfolio.

Ensuring the Greatest Tax Advantages

Opting for a loan for the purchase of commercial property can also provide you with significant tax advantages. You may be able to deduct the interest paid on these loans every year, allowing you to reduce your overall tax burden. This added savings can make a real difference in your company’s bottom line and can help you achieve higher profitability in the competitive marketplace.

Enjoying Improved Flexibility

commercial-building-for-saleLong-term leases can be difficult to break and may tie you to one location for an extended period. It is usually easier and more financially feasible to sell mortgaged commercial property and to acquire new real estate holdings than to break your lease and pay the penalties for these transactions. This is especially true during periods of growth in the real estate industry.

Increasing Your Profit Potential

Unlike rental or lease agreements, you have greater control over the use to which you can put property you own. If it becomes more profitable to lease out your current property or to leverage it against another purchase, you can take advantage of these opportunities to enhance your financial portfolio.

By choosing a commercial building mortgage over leasing or renting your business premises, you can enjoy a number of important advantages that can benefit your company financially both in the short and long-term. This can provide much-needed stability for startups and added profits for established companies.


If you are interested in obtaining a commercial building mortgage and are looking for an alternative lender in Arizona, California, Idaho, Nevada, Oregon or Washington, contact ReProp Financial. Click here to submit your loan request today!

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