Consider These 4 Factors When Expanding Your Business With Commercial Loans

Expanding your office or investing in new assets with a commercial loan should be huge wins for your company. The process can be complicated, so be sure to do your homework first.

As your company’s leadership begins to chart out a course for 2018, it is likely that talk will come up of expanding your business. With the help of a commercial real estate loan, your company would have funds to expand your footprint with a new location, renovate existing office space or invest in separate real estate assets as new sources of revenue. Having a project financed is no small logistical matter, however. Extensive planning and strategizing will be necessary to make the most of such an investment.

With this in mind, it makes sense to review a few of the important considerations that a company must make when expanding their business. A carefully planned expansion or development will ensure the investment begins to demonstrate a significant ROI as quickly as possible. Get a head start on your evaluation by using the following tips:

1. Develop A Vision: There’s no point in committing to a business expansion unless it’s part of a comprehensive strategy. Making infrastructural changes just to shake things up is an extremely risky move. That’s why it’s always important to consider how an expansion plays into the company’s broader financial goals.

2. Do Your Homework: Once your entire company is aligned behind a single expansion strategy, it’s time to figure out all the dirty details. Identify costs, anticipate potential snags in the development schedule and mock up loan terms that sync up with your company’s timetable. In addition to making it easier to find the right lender to finance your project, this familiarity with the process will provide your company with added leverage during negotiations.

3. Establish The Backup Plan: Even if you’ve come up with a foolproof plan for your business development project, there’s still plenty of chances that your expansion won’t go as planned. That’s why it’s prudent to consider alternative revenue streams or means of consolidating assets as a backup plan in case the expansion is not as successful as expected.

4. Find A Lender: Once your company has taken plenty of time to plot out its development project, it’s time to talk to a commercial lending professional. Your research should have provided you with some direction as to the type of loan terms you’ll need with your financing. Strongly consider online lenders in addition to traditional financial institutions.

The Right Commercial Loan Provider Understands Your Project

When comparing different commercial loan providers, you’re likely to find a few who offer comparable terms for your project. Go with the lender with more experience funding projects similar to yours. You’ll find that working with a lender that understand and supports your project is much more productive experience.

Your choice in commercial lender and loan terms will determine how quickly your investment needs to start producing a meaningful ROI.

Want more flexibility with regard to your project financing? Work with a lender that has experience financing unique projects. You can learn more about the types a projects a lender has funded by viewing their online portfolio.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177 NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years. 

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