What Commercial Property Are Applicable for MIDF's Business Financing?

Commercial property financing is a common tool for business owners. It provides the funds needed to purchase, renovate, or refinance commercial properties. The types of properties that can be financed under this financing include:

• Retail shop lot 
• Office buildings
• Factory
• Commercial land
• Industrial land

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This financing is typically secured by a mortgage or lien on the property and is paid over a fixed period. Financing rates are fixed at 4% for SMEs and 5% for non-SMEs on a monthly reducing balance. 

The Difference between Commercial & Residential Financing

While some may assume that commercial property financing works the same as residential financing, they are quite different. The key differences are outlined below:

Financing Borrower

Commercial real estate financing is usually granted to business entities, such as corporations, developers, limited partnerships, funds, and trusts, while residential financing is offered to individual borrowers.

Financing Limits

In terms of maximum financing, you can generally take up to 90% financing for residential properties. However, this applies only to your first two properties; for the third, the financing cap drops to 70%.

Commercial property financing, on the other hand, allows for a maximum financing margin of 100%, and unlike residential loans, there are no limits based on the number of properties you own.

Tips to Apply for Best Commercial Property Financing

When looking for the best commercial real estate financing for your business premises, start by researching and comparing different providers online. Once you’ve found a suitable option, gather all the necessary documents to ensure a smooth and successful application.

It’s important to also understand the terms and conditions of the financing agreement thoroughly, and plan your installments accordingly. After applying, stay in touch with your financing representative to stay updated on the progress.

One option you can explore is MIDF’s business financing. With expertise and a range of financing solutions, MIDF can help you find the best fit for your commercial property needs.

Finance Your Business Premises in Malaysia with MIDF

Owning your business premises is one of the significant assets that can offer various advantages. It provides complete control over how the space is used, designed, and managed, without the need for landlord approval, which is often required when leasing and can come with additional costs.

Unlike leasing, owning your business premises gives you the flexibility to tailor the space to your exact needs and establish a permanent business address. Properly maintaining your property also helps sustain this professional image.

If you're looking for financial support to secure or manage your business premises, MIDF offers tailored financing solutions to meet your needs.

Expand Your Business with Commercial Property Financing Today!

At MIDF, we understand that business growth requires more than just acquiring property. That’s why we offer a range of financing solutions designed to support your business at every stage. 

For women-owned SMEs, our Women SME Financing (M-WiSE) provides tailored financial solutions to empower viable businesses with easier access to funds. Our Halal Accreditation & Technology Improvement (HATI) financing helps with obtaining certification, supporting business growth, expanding into global markets, and adopting new technologies.

We also offer Sustainable Green Biz Financing (SGBF), which encourages green technology and energy efficiency projects for local businesses and industries.

MIDF is here to provide financial support and expert advice for your business needs. Contact us today for a personalised consultation to explore the best financing options tailored to your unique business goals.

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