If you are a business owner, you may find securing financing from a bank challenging. Even if your application gets accepted, the traditional lending criteria are pretty strict, and your loan terms might not be as flexible as you want. These are the top reasons why many business owners like yourself are now inclining toward commercial financing. It is an easy and quick way for business owners to access the funds they need to boost their profits.
What Do You Mean By Commercial Financing?
Commercial financing is a loan made for businesses. However, it’s a broad umbrella term. When considering commercial financing, you will have many financial products, like donation crowdfunding to eBay seller finance, standard business loans, and mezzanine finance. Each financing option is tailored towards achieving a slightly different business goal, like providing the capital needed to make new investments. All commercial financing options fit into these broad buckets:
- Property Finance: Where the money you borrow is used for specific estate-related outcomes
- Lines of Credit: Where you establish an ongoing borrowing facility that allows businesses to borrow within their agreed terms repeatedly. You can get this borrowing against your inventory, invoices, or other assets.
- Loans: Where a fixed loan amount is borrowed and repaid over a period at the agreed rate of interest.
How Can Commercial Financing Help Businesses?
Now that you know how flexible commercial financing is let us look at some other reasons why it’s easier for business owners to get the commercial financing they need to achieve their future business goals:
It’s More Forgiving To New Businesses.
Commercial financing options are a more feasible alternative for small business owners who lack assets or a proven track record that a traditional lender, like a bank, would require. All business owners hoping to get commercial financing can find a wealth of options, each of which will help their business reach slightly different outcomes. Working with a professional finance broker from Real Estate Funding Solutions ensures you are in good hands.
It’s More About Understanding Of Businesses With Adverse Credit Histories.
Not all businesses have an ideal financial past. However, this should not be a factor holding you and your business back from potential success. While a traditional bank may put a black mark against your business’s name and refuse to lend you money, commercial lenders are generally more willing to look past your credit history and help you build a future. They will first check out your business plan and current opportunities and help you make the best decisions for your future instead of punishing you for your past.
It Offers You A Wide Variety Of Solutions.
Though we have briefly discussed this earlier, it’s always worth exploring other commercial financing options that a professional business owner can get using commercial financing:
- Bridging Loans: This real estate finance can help fill the funding shortfall between finalizing to purchase a real estate property and getting a mortgage, helping you keep things moving.
- Invoice Financing: This revolving credit facility enables you to borrow funding against a part of or all your sales receivable, allowing individuals to access the capital locked in any unpaid or late invoices.
- Asset Refinance: It is a secured loan that enables you to borrow funds against an asset owned by your firm to unlock the capital it represents and change it into ready cash.
- Sale-And-Lease-Back – Here, an individual can sell their assets to a lender and pay a monthly fee for ongoing access. It’s an incredible way you can access high-value assets with small lifespans.
These are only a small sample of commercial financing options that our Real Estate Funding Solutions professionals can help you get.
Fast Access to Funds
There is generally less red tape when borrowing from a commercial finance broker. Our Real Estate Funding Solutions experts aim to help businesses get approval within a few hours – a far smaller timeframe than you would expect from a high street bank.
Lower Interest Rates
Your interest rate can vary depending on your lender and finance type. Though each real estate lender is different, interest rates for commercial financing are generally lower than other types of loans, thanks to their competitive nature. This, along with varied borrowing solutions, gives you an excellent opportunity to shop around and find a deal that fits your needs the best.
Given all the flexibility and convenience commercial financing offers business owners, it can help you boost your overall potential and make the most profit. It can open you up to several business opportunities you couldn’t access before. With commercial financing, you will no longer have to meet stringent lending criteria or wait months for funds to grab a limited-time opportunity to make a profit.
Contact Real Estate Funding Solutions To Help You Find The Best Commercial Financing!
Our Real Estate Funding Solutions experts have spent years in the industry and can quickly answer all your questions. Our professionals will help you take a realistic look at your business and the challenges you wish to overcome. Once you clearly understand where you are and where you want to be, our team will find the best commercial financing solutions to help you get there. Call us at 855-913-8637 to learn more about commercial financing or start your application process immediately!