withco provides a platform that enables small businesses to transition from renting to owning their commercial properties through a structured lease-to-own model. By facilitating property acquisition and offering down payment credits, withco addresses the challenge of rising rental costs and the loss of local business identity in communities.
Funding
$32.1M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
CPFounders
Product
Problem
Many small businesses struggle to acquire commercial properties due to the difficulty of securing a mortgage and the rising costs of rent, which can threaten their long-term stability and community presence. Landlords often favor large, well-known tenants over local businesses, further limiting opportunities for small businesses to own their spaces.
Solution
Withco provides a lease-to-own program that enables small businesses to transition from renting to owning their commercial properties. The company purchases properties occupied by qualified small businesses and rents them back with an option to buy at a predetermined price. A portion of the rent paid by the small business is set aside as a down payment, facilitating their eventual purchase of the property. This model allows businesses to build equity and secure their location, fostering long-term stability and community investment. Withco also provides financial consulting to help small businesses navigate the path to ownership.
Target Audience
Withco primarily targets established small businesses across various industries, including medical, automotive, and food, that are seeking to secure their long-term location and build equity through property ownership.
Features
- Qualification process to identify healthy small businesses suitable for property ownership
- Property acquisition and management by Withco, reducing the burden on small business owners
- Predetermined buyback price established at the start of the lease term
- Annual contribution of 2% of the buyback price towards the tenant's down payment credit
- Connection to vetted lenders to facilitate mortgage readiness
- Support for Small Business Administration (SBA) loan programs