Commercial Loan Options

Commercial Loan Options

• Bridge Loans
• Commercial Purchase
• Commercial Refinance
• Construction Loans
• Factoring
• Hard Money Loans
• Mezzanine Financing
• Non Recourse Loans
• SBA 504 Loans

• Bridge Loans:

  Bridge loans are short-term financing solutions designed to “bridge” the gap between immediate financing needs and a long-term financing solution. These loans are commonly used in real estate transactions when there is a time-sensitive opportunity or a need for quick funding. Bridge loans typically have higher interest rates but offer flexible terms and fast approval processes, making them ideal for borrowers who require immediate capital.

• Commercial Purchase Loans:

  Commercial purchase loans are used to finance the acquisition of commercial properties. These loans can be used to buy various types of properties, including office buildings, retail spaces, warehouses, or multi-unit residential buildings. Commercial purchase loans typically offer competitive interest rates and terms that align with the expected income and value of the property.

• Commercial Refinance Loans:

  Commercial refinance loans enable borrowers to replace existing loans with new ones that offer better terms, such as lower interest rates, extended repayment periods, or improved cash flow. Refinancing can help businesses reduce monthly payments, free up capital, or consolidate debt. It’s an excellent option for borrowers looking to optimize their financial situation and take advantage of more favorable market conditions.

• Construction Loans:

  Construction loans provide financing for new construction projects or substantial renovations. These loans are disbursed in stages or “draws” as the construction progresses, ensuring that funds are available to cover the costs at each phase. Construction loans typically have higher interest rates and shorter repayment terms, but they can be converted into long-term financing options once the project is completed.

• Factoring

  Factoring is a financing method that involves selling accounts receivable (unpaid invoices) to a third-party financial institution, known as a factor. In exchange for a discounted purchase price, the factor provides immediate cash to the business. Factoring is particularly beneficial for businesses that have outstanding invoices and need immediate working capital to cover operating expenses, purchase inventory, or invest in growth opportunities.

• Hard Money Loans:

  Hard money loans are asset-based loans that use the property itself as collateral. These loans are typically issued by private lenders or investors and are commonly used for real estate investments. Hard money loans are known for their fast approval process and flexibility, as they focus more on the collateral value rather than the borrower’s creditworthiness. However, they often come with higher interest rates and shorter repayment terms.

• Mezzanine Financing:

  Mezzanine financing combines elements of debt and equity financing. It involves borrowing against a property while also granting the lender equity participation in the business. Mezzanine financing is often used to fill the gap between the borrower’s equity and the senior debt provided by traditional lenders. This option is suitable for businesses looking to raise significant capital for expansion, acquisitions, or buyouts.

• Non-Recourse Loans:

  Non-recourse loans are secured by collateral, typically real estate, where the lender’s sole source of repayment is the property itself. In the event of default, the lender cannot pursue the borrower’s personal assets beyond the collateral. Non-recourse loans are commonly used for large commercial properties and provide borrowers with limited liability.

• SBA 504 Loans:

  SBA 504 loans are government-backed loans administered by the U.S. Small Business Administration (SBA). These loans are designed to help small businesses acquire fixed assets, such as real estate and machinery, to promote economic growth and job creation. SBA