It can be challenging to pursue business expansion as a startup because you need your limited funds just to keep your business running from day to day. Fortunately, you have several financing options to choose from to help make expansion possible. We highlight some of the most common ones below.
This type of short-term loan for business expansion is ideal if you need to refinance an existing mortgage due to property deterioration or want to invest in a distressed property. The interest rate is typically lower than other types of loans, and the lender only requires you to pay interest for the first six to 24 months. This provides you with more cash to devote to everyday business expenses.
Are you interested in developing new properties but don’t have the cash on hand to do so right now? A construction loan could make a good option for you. Companies often pursue this type of business expansion loan to build multi-use office complexes, retail stores, restaurants, and new medical facilities. They typically come from a bank, credit union, or alternative finance company.
Small Business Administration (SBA) 504 Loan
This type of SBA loan is specifically for the purchase of equipment or real estate for the purpose of business expansion. Because the government guarantees repayment of SBA 504 loans, both interest rates, and repayment terms tend to be more generous than the typical business loan from a bank. The maximum loan amount is $15 million dollars.
Make Sure You Work with a Reputable Lender
Applying for any type of loan can be a long and complicated process. That is why it’s essential to find a lender who communicates well to keep you updated on the status of your business expansion loan. You also want to choose a lender experienced with the type of loan you choose and one who is willing to work with you to come up with the most attractive terms.
Commercial Capital Partners is here for you when you’re ready to expand your business. Please contact us today to learn more.