Selecting the right option for accommodating your business is one of the most important decisions when getting started. A great location can help improve sales and productivity, attract the right kind of clients and good employees.The location you choose will depend on the nature of your business. If you are starting out, it may be possible to operate your business from home until you become more established, especially if you provide a service. It is for this reason that Standard Bank stepped in with the Business Mortgage product offering.
The Standard Bank business mortgage gives you the funds to buy a converted residential property, where a portion, or the entire property, will be used for business purposes. Properties which qualify for this type of loan include properties that have a consent use from the municipality where less than 50% of the property floor space will be used for business purposes as well as properties that have a business zoning from the municipality and 50% or more of the property floor space will be used for business purposes.
This facility allows you to borrow an amount of between R100,000 and R10 million and the repayment period can be up to 20 years. You can get a loan of up to 80% of the property’s assessed value and link it to an Access-Bond facility. It has a further advance facility and a re-advance facility.
Businesses which qualify for this type of loan include consulting rooms for doctors, dentists, physiotherapists, veterinarians, professional rooms for architects, quantity surveyors, engineers, home offices for attorneys, accountants, consultants, home shops for hairdressers, beauticians, potters, bed & Breakfasts/guesthouses, home photography studios, nursing schools/crèches and home laundries.
Documents required to apply the mortgage include offer of purchase, complete income and expenditure statements, current deed, zoning letter from the municipality, latest rates and taxes account, letter of consent from the local authority in the case of a creche and a health certificate.
Standard Bank can be contacted on 0860123000.