Securing the right business loan makes a tremendous difference when you're pursuing fast growth and prime investment opportunities. Here's what you need to know to get the funds you need for profitable growth.
Businesses have several options when it comes to securing cash in the form of a loan. Each choice has its own pros and cons, so you should take the time to consider your options before you settle on any kind of financing. Some common types of business loans include:
Term loans: Available from both banks and online lenders, term loans provide you with a set amount of money on a predetermined repayment schedule. Banks are the best option if you're looking for a long-term loan and you have the time and financial standing to secure this type of loan. An online lender is usually the better option if you need funds faster.
SBA loans: SBA Loans are backed by the U.S. Small Business Administration, which makes them more readily accessible to borrowers who may not qualify for other business loans. These loans typically have a term of up to 25 years and an interest rate ranging from 5% to 13%.
Joint venture loans: When individuals can't secure funding on their own, they may pursue a joint venture loan with another party. This can help you secure the financing you need to start a new business venture, provided that you're comfortable negotiating fair terms to split the profits.
Hard money loans: Hard money loans, like traditional mortgages, are backed by collateral. This makes it possible to get a greater sum of money on a shorter timeline. However, you must have the collateral to put up for your loan, and you will need to pay back the funding appropriately or risk losing that collateral.
Before you secure a business loan, you should draft a business plan detailing what you'll use the funds for. While not all lenders will ask you to submit this plan, it's a valuable tool for you to have on hand, ensuring that you know how to use the funds wisely, channel your profits appropriately, and repay the loan in a timely manner.
Once you've drafted your business plan, you'll have a solid understanding of:
If you need funds fast and you can repay your loan quickly, a hard money loan can help you access the cash you need in a short amount of time. This is often the best option if you need funds to quickly close on a prime investment property that you can flip fast for significant profits.
To secure a traditional loan, you will typically need to provide detailed information on your finances and undergo a lengthy review process. If you're interested in Gainesville hard money lending, the lender will focus more on the value of the property than on your business's internal finances.
If you're purchasing property in the Gainesville area, you may need to work with Florida hard money lenders to get the financing you need in a timely manner. The Gainesville housing market is somewhat competitive, with rising home prices that went up 21.7% between December 2021 and December 2022. A Gainesville hard money lender is the ideal choice if you're flipping a house, purchasing an investment property, or purchasing a commercial property. Hard money business loans let you act quickly, which is essential in the real estate market.
Gainesville grew 13.5% between 2010 and 2020, and real estate developers are now calling for greater population density to help control the sprawl. This presents great opportunities for commercial developers who are interested in building apartment buildings or other types of high-density housing. You can use a hard money lender's calculator for Gainesville real estate loans to check the monthly payments based on the interest rate and term of the loan. If you can build or flip your property fast, you can likely succeed with a hard money loan.
If you're looking for a reliable company to provide Gainesville hard money lending, contact our team at Gauntlet Funding. We work with customers throughout Florida including those in the Gainesville, Tampa, and Winter Garden areas. Make your dream of purchasing property in the Sunshine State come true with our fast funding and affordable loans.