Commercial Real Estate Financing Alternatives

CRE Financing Alternatives

The purchase of a new property can be crucial to starting a business or expanding an existing one. Whether the investment is a warehouse, storefront, or apartment building, buying commercial real estate can prove to be a lucrative endeavor. The cost, however, is often beyond what the business owner can pay out of pocket. Financing may be the only option for some.

Many entrepreneurs find the world of traditional funding daunting. They want to be approved quickly for the amount they desire. They hope to move forward with their business plans without hindrance. The usual process of gaining access to investment capital does not always conform to the entrepreneur’s enthusiasm.

Alternative financing fills in the gap where traditional methods fall short. It allows the borrower to overcome the usual hurdles and gain access to capital he or she needs to acquire the property in mind. Some of the funding options are designed specifically for the purchase of commercial real estate. Others are nonspecific concerning the use of the money.

Healthcare Financing Alternatives

Doctors may, for example, seek a practice acquisition loan from a lender who specializes in the same. Relying on such a lender makes it easier for the doctor to get approved for the cost of the practice. Using this alternative may grant the practitioner access to a variety of helpful, related financial services, such as equipment financing, debt consolidation, and access to additional working capital.

Healthcare professionals are not the only ones who can turn to specialized lenders or programs for assistance in buying commercial property. Franchise owners and entrepreneurs in a variety of industries may also find a backer to satisfy their unique financial requirements.

Other Financing Alternatives

There are still many alternatives to consider. Owners of existing businesses, for example, may find asset-based funding to be best. With this route, the loan depends neither on the company’s nor the business owner’s credit. Instead, owned property is used as collateral. That property can be equipment, a location, or even receivables. Mezzanine financing is a type of asset-based funding.

Some may not have the assets it takes to secure a sufficient amount of capital. Many startups, for example, have yet to acquire any assets of enough value to serve as a pledge for the loan. Even without collateral, however, it is often possible to obtain the right amount of financing for the purchase. One way is to get the federal government to be a partial guarantor through an SBA loan.

Getting financing for the purchase of a commercial real estate property does not have to be hard. The various alternative methods can make it easier to achieve the goal.

For more help with Commercial Real Estate Financing Alternatives in Denver and beyond, contact WN Financial Solutions today.

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