property - leased/serviced offices/buy?

[hollyyetmore]

Hello,

We're just working through a new business plan for potential expansion and are going to be attempting to get outside funding, potentially from a venture capitalist and we're discussing what to do about accomodation (I know, I have the wildest sunday nights!) anyway, does anybody here know whether potential lenders and funders prefer businesses to plan to buy or lease office space? Obviously buying provides an asset and yet is a big drain on capital. Any opinions?

[Adam]

Hi Holly

I do not know but my thought is that you have summed it up perfectly. Buying creates and asset but costs a lot of money.

At least leasing gives you fixed regular costs and it is much easier to move to new premises when you expand which I guess you will be.

[Martin]

Myself I think leasing is best on a new startup. Altho it's an asset to have, if you ever have to cash in that asset it's the roof over your head that will go..

I try to secure loans on other stuff. My Car for example. It's a risk but one i'm more prepared to take at this stage in my venture.

[hollyyetmore]

thanks fellas. I think it's just one of those things that needs a lot of careful thought and there's no one obvious answer... my main worry is which option potential lenders prefer to see in a business plan. Hmn... decisions decisions