Loans To Help With Your Business Expansion
After being in business for a while, you may find it’s time to expand. Your current store may need to be bigger, or perhaps you want another location. It can be an exciting process, but you may need capital. You might not have enough money on hand, but you can apply for a loan to cover the costs. There are many loans available, but here are a few that can help with your business expansion.
A construction loan may be valuable if you plan to build another location instead of renting an existing building or space. Generally, this loan lets you borrow up to $30 million, which should be enough to cover your new structure. New buildings might be office space, hotels, or other multi-use facilities. They come with terms of 3 to 24 months with interest rates of 6.5% to 8.5%. Construction loans are geared more towards seasoned entrepreneurs. If this sounds like a loan that could help further your business expansion, research and see how to apply.
If you want to buy an existing property that needs work, a bridge loan may be what you want. You can borrow up to $15 million, which is excellent for fixing existing properties. After repairing and improving the building, you can expand your business using the new structure. The interest rates range from 8% to 10%. Also, the term length is 6 to 24 months. Note that the interest rates are paid only during the first 6 to 24 months. If you need money for something else, this is valuable.
SBA 504 Loans
If you have a small business and want to buy a commercial space, an SBA 504 loan is perfect. You can also purchase equipment for your business expansion, which can help your success in the long run. This loan is specially created for small business owners and includes long repayment schedules. You can borrow up to $15 million and have an interest rate of 6% to 6.25%. These rates are noticeably lower than other loans.
Expanding your business as a small or large company is an exciting time with new opportunities. You do not have to let a lack of funds stop you from your business expansion plans, but you need to research and strategize. Ensure that you know what kind of loan you need and how you plan to use it. Create a plan so you won’t waste time or money when growing your business.