New finance option for businesses

Nationwide Finance has a new finance package designed to help businesses purchase their own premises.

Tuesday, November 7th 2006, 6:04AM
Its 'owner-occupied' package allows business owners to reap the benefits of owning their own premises without the red tape that commercial banks would normally impose.

"Commercial banks will finance these sorts of deals, but business owners often end up paying a high price in terms of the restrictions placed on them such as cross-collateralisation of securities, equity covenants and heavy principal repayments," Nationwide ceo Steve Wilson says.

"Our new package enables business owners to maintain crucial separation between their business finances and their new property asset, meaning current banking arrangements are not impacted and business owners retain maximum flexibility to run their businesses as they see fit."

"This package offers business owners the chance to make a significant commercial property investment with the prospect of future capital gains, enjoy security of tenure and protect the business against rising rents.

It also allows business owners the freedom to make alterations to their premises to suit the needs of their business and there is even the potential for a future retirement income stream."

Nationwide is offering interest only options for up to 80% of the property value which helps free up cash flow.

"Some months ago we identified the need for a commercial property package which enabled our customers to get the benefits of property ownership without suffocating restrictions. Our new owner-occupied package is the answer to that need and we’re already working on other innovative business financing solutions to be launched in the near future.”

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