How a Private Commercial Hard Money Loan Can Help Grow Your Business

In a crowded, competitive marketplace, nothing says success quite like a commercial real estate loan. It shows that you’ve “made it” and have given your company a strong foundation upon which to further build and branch out.

For many businesses, however, getting a traditional loan can be a challenge. These challenges can include issues with refinancing, purchasing and upgrading property and so on. There’s simply too much red tape and too many obstacles – especially in high-traffic areas where commercial real estate is limited and in high demand.

So What’s a Business Owner Must Do?

A private commercial hard money loan can handle many of the most cumbersome tasks of a traditional loan, but without the associated headaches and deluge of paperwork. With a private money loan, you open up the doors to a wealth of possibilities, including:

Short-Term Refinancing

If you’re nearing the end of your current loan, refinancing with a “bridge loan” like a commercial real estate loan can be perfect solution. Not only are these loans short-term (often as short as 6 months), but they offer much more flexible terms so that you can map out your finances in advance.

Many private lenders understand the unique needs of those in the commercial private money market, and they can work with you to offer short-term, fixed-rate commercial real estate loans. Since the interest rate stays the same, you can forecast your financial situation months ahead of time, while getting the money you need to grow your business. It’s a win-win!

Acquiring Property For a New Location

Has your business grown to the point where you’re considering opening up a second or third location? That’s fantastic! But when you start to look at expanding with commercial real estate, you can easily get overwhelmed by the sheer amount of red tape and financial considerations that seem to block your every move.

A private hard money loan can help you bypass many of these difficulties, by taking all of the middlemen out of the equation. By working with a private lender, you’ll finally be able to compete the most in-demand markets. Oftentimes, business owners working with private lenders find that they’re able to make and have an offer accepted while their competitors are still drowning in paperwork!

Upgrading Your Existing Property

As your business grows, so too should your commercial property grow with you. Sometimes, however, depending on the age of the building or its construction, renovations become more and more crucial.

Whether you want to expand your current space or make much-needed upgrades, you’ll know if you’ve gone to your local bank about a commercial loan how cumbersome the process can be.

Since banks are not in the process of owning or dealing with real estate, they will drag their feet at the prospect of renovating or remodeling an old building or updating outdated infrastructure.

A private commercial hard money loan can step in and help you make the changes you need or want, without the interference or slow response time of traditional loans. Many business owners actively seek out commercial real estate loans specifically for the purpose of rehabilitating old buildings – breathing life back into a stale, out of date piece of property, and helping to bring jobs and foot traffic to that part of the city.

Opening Up Extra Operating Capital

Whether the demand for your product or service is higher than expected, or you’re riding the seasonality roller coaster, you may not always have access to the funding you need to hire new employees. Provided you handle your accounting in a timely and accurate manner, using a commercial loan to help cover expenses from paying extra employees can help you meet customer demand and keep up with orders easily.

These are just some of the many ways that a commercial hard money loan can help you stay ahead of the curve when it comes to buying new property, renovating your existing property, or helping you to refinance or get the money you need to pay employees.

To learn more about how a private commercial hard money loan may be able to help in your situation, call LBC Capital at (818) 584-2424 or email us using contact form.

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