How To Expand Your Business
So your business is growing. Congratulations! It’s hard enough to stay in business, let alone engage in business growth. Oftentimes when your business expands, you need more room to house the people you’re employing. In order to properly prepare for business growth of this nature, it’s important to find the right financing.
There are lots of commercial loans available to help you secure real estate for your business. These types of loans could help with anything from buying a new property, to building a new office building, to covering the cost of renovations in your current building. The important part is finding the right financing for your business.
In this article, we’ll cover some of the commercial loans you can take advantage of in order to fuel business growth and expansion.
Financing Options for Business Expansion
Traditional loans are one of the most common types of commercial real estate loans, but can also be some of the hardest to get. The terms of the loan are about what you’d expect, including being lent a fixed amount and paying it back over time (with interest). The downside to a traditional business loan for commercial real estate, though, is that you have to have very good credit to take part, as well as have high revenue figures to show the bank.
While traditional loans are great, there are other alternative options available as well. Let’s take a look at a few of those next.
If you need additional space but an existing property won’t do, then a construction loan may be just the thing for you. You can typically borrow up to 30 million with terms of 3 months to 2 years. The loan could take a couple of months to go through, though, so you’ll want to take that into account in the building process.
SBA 504 Loans
Small businesses that need either more equipment or more real estate can also take advantage of SBA 504 loans. These loans are made specifically for small businesses and include repayment terms that are longer than usual, with lower rates. This type of loan can also be approved in 1-2 months, so you can get the money relatively fast.
Lastly, you could also look into bridge loans if you have some cash on hand, but need a little additional financial push. Bridge loans are great for short-term deals, have a smaller monthly payment and are even quicker than the other two options as far as approval goes.