FNB launches finance option to help SMEs buy their commercial premises

The offering is aimed at reducing the upfront capital required from businesses looking to move from renting premises to owning them. It includes funding support for bond-related costs.

Lowering the barrier to ownership

FNB said the upfront costs associated with commercial property purchases, including deposits, transfer fees and bond registration costs, can prevent established SMEs from buying their own premises despite having sustainable businesses and consistent cash flow.

The bank said its new offering is intended to help qualifying businesses overcome some of these costs and invest in property as they expand.

“Many entrepreneurs have built strong businesses and generated consistent cash flow over time. The obstacle is often the significant upfront capital traditionally required to acquire commercial property,” said Preggie Pillay, CEO of FNB Commercial Property Finance.

The bank said property ownership can allow SMEs to build equity in an asset while gaining greater control over their operating premises.

Pillay said increasing access to commercial property ownership could also support business expansion and job creation.

“When more SMEs are empowered to move from renting to owning, the impact extends far beyond individual businesses,” he said.

The offering is subject to FNB's lending criteria and qualifying requirements.