The Many Uses of a Commercial Real Estate Loan

Businesses are experts at what they do. They’ve perfected their craft to the point that they can offer it to customers who will pay them for their time. This is probably 50% of what a business does. If you’re wondering what the other 50% of the effort of a business goes to, it’s putting our fires. This is because, in business, problems arise every day, and when it involves money, this could be scary. Most businesses need to take out loans now and then, and the traditional route is visiting a bank. But if a business is running low on funds, what other options are out there that could suffice? Look no further than a commercial real estate working capital loan.

Sometimes, a business can put up equity in a property as collateral for a loan. If the business owns commercial real estate, it could be a viable option to get some cash flow for many reasons.


Many times, businesses simply underestimate their growth. As they begin to grow, they don’t have the finances to make all the proper adjustments to accommodate the changes. For the business to stay afloat and survive as it scales, it might consider taking out a working capital loan based on its real estate.


As stated, unforeseen emergencies happen all the time. This could be in the form of a natural disaster, such as flooding or hurricane damage. Emergencies that involve precious business equipment could qualify for this kind of loan. Without the equipment, the business cannot operate.


Another cause for this kind of loan could be advertising. A smart business sees the importance of advertising because without it, they obtain no customers. However, a large marketing strategy could cost tons of money upfront, even though there should be a huge return on investment. To pay the marketing agency, a loan such as this could be needed.


One of the more common reasons is payroll. If a company has no working capital, there is no money to pay the employees. To make payroll and keep a happy team full of productivity, a commercial real estate loan could be the option.

As a business, know that you have options today when it comes to your loans, and be aware of every potential reason for a loan. You never know when an unfortunate situation could arise.


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