Working Capital Loans

Using the equity in your commercial real estate or residential investment property can be a great way to secure a business working capital loan. This is especially useful for business owners who need funding but have a limited credit history or poor credit score.

Equity is the difference between the current market value of your property and the outstanding balance of any mortgages or loans secured against it. For example, if your property is worth $1 million and you have a mortgage of $500,000, you have $500,000 in gross equity, but you cannot use 100% of that equity. If approved for a loan, the percentage you can use will be determined.

To use your property equity to get a business working capital loan, you will need to follow these steps:

Determine your property's equity: You can obtain a current appraisal of your property to determine its current market value. Subtract the outstanding balance of any mortgages or loans secured against it to find out how much equity you have.

Apply for the loan: Fill out our application and provide us with documentation of your property's value and equity, such as a recent appraisal and mortgage statements.

Wait for approval: We will review your application and make a decision on whether or not to approve your loan. If approved, we will then provide you with the terms of the loan, including interest rates and repayment terms.

Use the funds: Once the loan is approved, you can use the funds for your business's working capital needs. This may include purchasing inventory, paying bills, or investing in marketing or other growth initiatives.

It's important to note that using your property's equity to secure a loan means that if you are unable to repay the loan, the lender may foreclose on your property. Additionally, using property equity to fund a business may not be the best option for everyone, as it can put your personal assets at risk.

Before deciding to use your property's equity to secure a loan, it's important to weigh the risks and benefits and consider alternative funding options. Consult with a financial advisor or business consultant to determine if using equity is the right choice for your business.