Securing adequate financing for a new or small business can be challenging. Quite often, entrepreneurs do not meet the requirements of traditional lending channels to get the loans they need to launch or grow their businesses. Other times taking on debt is not the desired option, because the burden can place a strain on finances for new and growing businesses. Fortunately, business owners can get the financing they need through real estate equity.

How Real Estate Equity Loans Work

Real estate equity loans give business owners a source of funding by leveraging the value of owned properties. Real estate equity, however, is not restricted to only using commercial properties. Residential property, and even secondary mortgages, can be used for real estate equity loans. Real estate equity loans reduce the amount of red tape business owners have to go through to secure financing, and can be arranged quickly and efficiently.

How Are Real Estate Equity Loans Used?

Real estate equity loans can be used for a wide range of purposes. Emerging business owners, for example, can use real estate equity as seed money to launch operations. Small and growing businesses leverage real estate to expand operations, acquire new equipment, run marketing campaigns, restock inventory, hire additional staff, complete mergers and acquisitions, roll our new products or services, and anything else needed for continued success. Financing structure around real estate equity really has no restrictions, so business owners can use the capital for a number of purposes, without worrying about being in breach of the terms of the agreement.

Tips For Leveraging Real Estate For Working Capital

There are a few things business owners should keep in mind in order to get the most value from leveraging real estate to finance their companies. First, the property being leverages should have an appreciating value. Second, consult with your accountant to ensure our are getting all of the right tax benefits from tapping into our real estate. Third, pay attention to the interest. Fixed versus variable interest rates can make a major difference, especially in fluctuating real estate markets.

Get The Best Real Estate Equity Loans For Your Business

At METRIX Capital Group we work directly with new and small business owners to create working capital solutions tailored to their needs. If you need financing, but traditional debt vehicles are not the best fit, contact us to learn more about real estate equity loans for your business.