Your business is growing, and so are your needs. You’ve outgrown your current space, and your lease renewal is just around the corner. The big question is: Should you keep leasing or take the plunge and buy your own building?
For many business owners, buying a building isn’t just about more space—it’s a smart financial move. From gaining control over occupancy costs to building equity, owning your own property opens doors to long-term stability and growth. Let’s explore the benefits and how Security Bank & Trust Co. can help make it happen.
Why Owning a Building is a Smart Choice
1. Room to Expand
The right building gives you the flexibility to grow into your space, whether you’re adding more staff, equipment, or inventory. Owning your building means you’re in control—customize the layout to fit your needs now and in the future.
Location is everything. By purchasing a building, you can secure a spot that’s convenient for employees and customers alike, setting your business up for continued success.
2. Save Money in the Long Run
Leasing often feels like a short-term solution, but it can cost you more over time. Buying a building allows you to lock in predictable monthly payments, spread over 20 years, often at a lower cost than rent.
Not using all the space? You can lease out extra square footage to other tenants, creating an additional revenue stream that helps offset your mortgage.
3. Financing Options Tailored to Your Business
Financing your purchase doesn’t have to be stressful. At Security Bank & Trust Co., we specialize in helping Minnesota businesses secure funding for commercial properties. Our experienced team offers two primary options:
- Conventional Loans: Ideal for established businesses with strong financials, these loans typically require 20% down.
- SBA 504 Loans: A great fit for small businesses looking to preserve cash flow. With as little as 10% down, you can finance warehouses, office spaces, or retail properties, often at a fixed rate for up to 20 years.
SBA loans also allow you to roll in costs like renovations, equipment, and furnishings, giving you a comprehensive financing package.
4. Control Your Occupancy Costs
When you own your building, you’re no longer at the mercy of rent hikes or strict lease terms. You control your monthly costs, which means more financial stability and flexibility.
Instead of handing over cash to a landlord, you’ll be building equity in a property you own. That equity can later be leveraged to grow your business or fund future projects.
5. Long-Term Investment Potential
Unlike leasing, which offers no return on your payments, owning a building creates a long-term asset that may appreciate in value over time. This not only boosts your net worth but also gives you options down the line—sell, lease, or refinance as your needs evolve.
Some business owners sell their businesses but keep the building, creating a steady rental income that supports them in retirement. It’s a smart way to turn your property into an ongoing source of wealth.
Security Bank & Trust Co. – Your Local Financing Partner
At Security Bank & Trust Co., we’ve been helping Minnesota businesses grow for decades. Our team understands the unique needs of local businesses, and we’re here to provide personalized guidance as you explore your options. Whether you’re looking for conventional financing or an SBA 504 loan, we’ll help you secure the funding you need to make your building purchase a success.
Is It Time to Buy Your Building?
If your business is growing, now’s the time to think about owning your own space. At Security Bank & Trust Co., we’re committed to helping you take this important step with confidence. Contact us today to learn more about your financing options and get started on the path to ownership.
FAQs About Buying a Commercial Building
Q: How do I know if buying a building is right for my business?
A: It depends on your business growth, finances, and long-term goals. Owning gives you control over costs and builds equity, while leasing offers more flexibility in the short term.
Q: Can I include renovations and equipment in my building loan?
A: Yes! SBA 504 loans allow you to finance renovations, furniture, fixtures, and even equipment as part of your loan package.
Q: How do I qualify for an SBA 504 loan?
A: Eligibility depends on your business type, size, and use of the property. Our team will guide you through the requirements and application process.
Q: Why choose Security Bank & Trust Co. for financing?
A: We’re a trusted Minnesota-based lender with years of experience helping businesses secure financing for commercial properties. We offer personalized service and competitive loan options.
Final Thoughts
Owning your own building gives your business the stability and freedom it needs to thrive. Whether you’re looking to reduce costs, invest in your future, or grow into a larger space, Security Bank & Trust Co. is here to help. Let’s build a brighter future together—reach out today!
