Having a mortgage is a debt and a commitment and a big step for any small business. It’s a big decision and needs to be thought through in detail. Nevertheless, if it’s appropriate and feasible for you business to take on a mortgage, there can be many benefits being an owner-occupier of your business property, for example:

• The loan normally won’t be classed as taxable income. Furthermore, you may be able to claim the tax on your interest repayments.

• There are various types of rates, terms and repayment methods available, so you should be able to find a product that meets your needs and allows you to manage your business finances and budgets effectively.

• You’re likely to pay less in your monthly mortgage repayments than you would with rent.

• By buying your own premises you’re investing in your business rather than throwing away money to a landlord. It’s an asset, which may increase in value – and an increase in value means access to more business capital. In the future, you may be able to free up the equity in your property by refinancing.

• You don’t just need to buy premises for yourself. If you can afford a big enough property, you could rent out part of it in order to increase your business income. Then, when the time comes to expand your business, you have larger premises already.