4 Ways To Use Commercial Real Estate for Working Capital

If you’re a business owner, you know just how essential maintaining positive working capital is to covering your costs and running your day-to-day operations. Besides your usual expenses, there can also be unexpected situations that, of course, require solid cash flow to address. Keeping your cash consistent can often require financing, but these days, securing a traditional bank loan is tougher than ever, given the stringent credit history requirements and other factors, like the length of time you’ve been in business, that could help or hurt your case. You could try to seek out alternative lenders, but if you don’t have much recent revenue to show, that avenue might not work out well, either. Luckily, there’s another option to generate working capital when you need it – you can use the equity in your commercial real estate to get good financing. To learn more about the different ways this arrangement could benefit your business, read on.

1. You Can Take Care of Emergencies

Besides covering your daily expenses, sometimes emergencies arise that require significant cash to take care of. With a real estate working capital loan, you can handle any emergency situations that occur without worrying about whether you’ll be able to pay for them upfront.

2. You Can Update Your Technology

If you’re in an industry that requires updated equipment or cutting-edge technology to stay competitive, waiting until you can pay for new machinery up front could mean losing your advantage. With a commercial real estate loan, you can access the equipment you need when you need it.

3. You Can Expand Your Marketing

If you need to support your advertising efforts or if your business simply isn’t reaching as many people as it could, you can use your loan to pay for the cost of marketing your goods and services. After all, the better your marketing campaigns, the more new clients you’ll be likely to get.

4. You Can Cover Your Payroll

Finally, sometimes your loan needs to go to the basics – making sure your employees are paid on time. If you’re worried about not being able to make payroll this month, consider tapping into your real estate equity.

Maintaining positive working capital is essential to keeping your business running smoothly, but securing a good loan can be difficult. Luckily, if you have equity in commercial real estate, you can use it to obtain the business financing that your company needs. The next time you need a short-term solution to improve your company’s cash flow, consider tapping into your real estate. It might just be the right choice for your business.

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