Unlocking Opportunities: Understanding Different Types of Commercial Loans and How They Can Benefit Your Business
Do you want to grow your business? Need extra funds to achieve a business goal? Have you ever considered getting a commercial loan? Commercial lending is a great way to finance your business, build credit/relationships with lenders, and unlock new opportunities for the future of your business. If you are a business owner, you are most likely familiar with the benefits of commercial lending, but do you know what kind of commercial loan is right for you? Businesses have many needs, and finding the right commercial loan for yours is the best way to make sure those needs are met. To help you decide which loan is right for you and your business, here is some information about the most common commercial loans—
Commercial Real Estate Loan
Maybe the demand for your business is growing, and you need to open up more locations. Perhaps you need a warehouse or an office space to keep everything running smoothly. All of this can be accomplished with a commercial real estate loan, which can be entirely customized to fit both your business needs and your payment plan preferences. These can function as a first mortgage on a commercial property, funds to buy investment properties, and anything else you need for the future of your business and its real estate.
These can be short or long-term loans to fit your schedule and payment abilities.
Inventory Financing Loan
Just as the name suggests, inventory financing loans are great for businesses that need extra funds to keep up their inventory for a period of time. It takes a steady stream of cash to keep up your inventory, and needing a little help to maintain this is a common reason for businesses to seek inventory financing loans. This is also a great option for businesses whose inventory relies on creations, such as clothing, food, and art. With an inventory financing loan, a business can purchase materials for inventory upfront in bulk without the worry of running out of funds before they even get started.
Equipment Financing Loan
Before your business starts making money on its inventory or services, it has to have stable, functioning equipment. An equipment financing loan can help your business get the equipment you need to start creating your inventory, products, and services without needing to pay the often hefty out-of-pocket price. Often, with this kind of financing, the equipment itself is used as collateral, meaning you and your business do not risk huge personal losses. Equipment financing loans are one of the easier loans to be accepted in the business world.
Business Line of Credit
If your business financial needs are less specific or a one-time loan does not seem to be the best option for you, you can always consider opening a business line of credit. This credit program acts just like a personal line of credit. In case of unexpected expenses, being short on funds to pay employees or purchase inventory, or any other expense-related issue your business may run into, a business line of credit is there to help. With this kind of loan, you can draw from an available amount of money whenever needed. This can help businesses just starting out and needing extra funds, to businesses planning to grow and expand.
Every business has to spend money to make money, and commercial lending is the best way to do this safely while building relationships with lenders in the process. There are many options for you and your unique business to get the funding you need, and when you are ready to start the process of getting a commercial loan, the lending experts at 1st Advantage Bank are ready and eager to help you. Our lenders
will get to know your business personally, understanding all of your needs and goals, then put this knowledge into finding you the best possible lending options. We are growing our community, one loan at a time. When you are ready to start this process, contact our lending department at 636-970-0440. Member FDIC and Equal Housing Lender