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Non-equipment related financing options

SeymourDumore

Diamond
Joined
Aug 2, 2005
Location
CT
Guys

Are there any financial organizations like Intech Funding but for real estate upgrades rather than machinery?

BasicalIy, I am looking at a need to borrow approx 100K to replace the roof on my building.
I have talked to a few banks so I am aware of the various options available to me, and I do have both the credit and the collateral to choose any of it.
The problem I have ( not really a problem, but amazed how much different it is from equipment financing ) is that the options are both, somewhat time consuming
AND require a significant up-front cost just to get the loan. I am not talking about down payment, rather actual outlay fees associated with obtaining said loan.
I am looking at a simple 5 year fixed term loan for 100K. That's it!

I have multiple pieces of equipment that cost just about that, some cost twice that. With the exception of one, all are paid for and my total obligation ( equipment) is less than 50K.
Also, the building has more than twice the equity than the amount I am looking for.
And yet, all local, standard banks need enough paperwork to block the river Nile, and they need the time to make sure it is properly blocked.

Compare that with the equipment finance organizations, I am just ... Wow!!!

Do you know if there are any other options before I bite the bullet?

Thank You!
 
At that level, $100K, and for that use there are not a lot of options I know of. Try for a line of credit rather than a loan. I have a line and use it for those situations. There is an upfront fee but it's one time and then the line is always there. Borrow if you have to, pay it off, borrow again etc no new fees everytime. Unfortunately the line counts against your borrowing power as if it were fully borrowed, because you could do that at any time. So makes getting a future loan more difficult. But hey, use the line.
 
I do have a business LOC that would be sufficient and it is at $0 balance, but I'd like to keep it that way, ESPECIALLY in this business climate in 2020.
Paid it down to zero 7 months ago just before all this shit happened, and having had a 40K+ balance on it for years before,
it sure feels like a comfortable last resort to rely on should Earth decide to stop spinning in the next 3 months just keep up with the current times...
 
Is there anything like a home equity loan/loc available for your building?

What about taking a home equity line/loan out on your personal residence, loaning it to the company and making payments to yourself?
 
Never been in this situation commercially, but have you asked various roofing companies what financing they offer? They might laugh you off, but in competitive times there might be one who offers it, or will look into it. Or point to a lender who has helped other customers before.

Machine financing is easy because they can repo it if things go south. Doing that to a roof is still possible, but lots more work.
 
At this point it looks like the home equity on the personal residence is the most economical way to go, but kinda wanted to avoid it.

Apparently the options for an equity line on business property works differently and requires a lengthy process and carries an application fee of 2-3K up front.

As far as the roofers financing the deal ... not much of a chance there.
 








 
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