Do you have a business wherein you produce, manufacture, or assemble goods and commodities? Are you looking for a way on how you can secure funding or financing for your next business production?
Taking out a warehouse loan is something that not many people consider a successful and serious type of loan because of the fact that it would use and utilize the goods and commodities produced by a company as security or collateral.
Understanding Warehouse Loans or Funding
For you to be able to understand it clearer and better, warehouse loans or financing is a type of loan made and requested by a manufacturer, assembly office, or any other type of company involving production or distribution.
In this type of loan, you can get or apply for a loan and place your goods or your commodities as collateral or as security. However, the security or the collateral wouldn’t just stay within the hands or the reaches of the buyer. Instead, there will be a third-party company that would help control and manages them while the loan is being worked on to be paid off.
Example of Warehouse Loans
To illustrate further and to provide a more concrete example, take this as an example. A company or a manufacturer of generators used up their entire credit and they’re looking to acquire about $1 million more in order for their operations to continue and to extend farther than where they’re used to provide services to.
They can’t take out a usual C&I loan because it’s only short-term (usually less than a year), so, what are the options available? The best and the most efficient way to approach this problem is for them to take out a warehouse loan and put the generators they have as collateral.
The lender will then accept the unsold generators as collateral and this, in turn, will be transferred to the third-party company. That’s the overall idea of how warehouse loans usually work and function. Some businesses might come up with a different model, while there are some that can adapt this or have one close to this.
That will depend on the source or the financial institution – that brings us to our next question, which is…
Where Can You Get Warehouse Loans?
A lot of people think that only banks are able to give these types of loans, but that’s not actually what the case is. In fact, there are several more institutions equipped with the right knowledge to be able to provide these types of warehouse loans.
Some of which include:
Small Business Administration (SBA)
The SBA or the Small Business Administration is one of the few financial entities capable of providing these types of loans. You can approach them and their terms and their processing procedures wouldn’t be far from how banks would be.
So, you can expect quite a slow approval process in the lowest and the most reasonable and considerate interest rates possible.
Private Money Lenders
Another option you can have in taking these warehouse loans would be with private money lenders. However, unlike banks and the SBA, private money lenders would have:
- Higher interest rates
- Shorter repayment terms
While these factors might seem a lot to take, the benefits and the advantages of taking out warehouse loans from private lenders outweigh the cons dramatically – you wouldn’t even think about the high-interest rates!
In fact, here are the main benefits or advantages of taking loans from private lenders:
Forget about the long procedure of banks and the SBA, working with private money lenders, and have your loans approved within a week! Get pre-qualified or pre-approved in about 2 days, too! If you’re not comfortable in just paying monthly or bi-monthly, these private money lenders can offer quite a few different types and kinds of repayment terms and schemes possible. Unlike banks and the SBA, private money lenders would be able to approve higher loan amounts than usual. This is because they value the present and the future more than just the credit history, bank statements, etc.
Forget about the long procedure of banks and the SBA, working with private money lenders, and have your loans approved within a week! Get pre-qualified or pre-approved in about 2 days, too!
If you’re not comfortable in just paying monthly or bi-monthly, these private money lenders can offer quite a few different types and kinds of repayment terms and schemes possible.
Unlike banks and the SBA, private money lenders would be able to approve higher loan amounts than usual. This is because they value the present and the future more than just the credit history, bank statements, etc.
If you happen to find yourself in need of warehouse loans, and your business is situated here in the state of Florida, you can bank and count on us at Florida Commercial Real Estate Loan Group to get you the warehouse loans you need.
Our company has been deemed and looked at as the best, the most reliable, and the most dependent on commercial real estate loan groups in and around Florida! Thanks to the versatility and the flexibility of our services, we were able to help hundreds to thousands of businesses annually.
Why Work With Us?
We at Florida Commercial Real Estate Loan Group are just one of the many commercial real estate loan groups you can encounter in the market. Why should you choose us? Some of the most advantageous and the most beneficial factors you get in working with us include:
- Higher loan amount and approval
- Fast approval (within 1 week)
- All types of collateral or security accepted
- More flexible repayment terms and packages
- Free sample computation
- And many more!
So, wherever your warehouse or your business might be here in Florida, you can bank and count on us at Florida Commercial Real Estate Loan Group to help you with the warehouse loans you need!
Apart from warehouse loans and financing, we also offer a ton of other loan types and kinds, including but not limited to:
- Private money loans
- Hard money loans
- Commercial & industrial loans (C&I) loans
- Commercial land development
- Condotel financing
- Motel and hotel loans
- Million-dollar business loans
- And many more!
Check on our website to see what other loan programs and types we offer! With just one call or one email, we’ll be able to help you with what you need!
Work with the best, the most sought after, and the most trusted commercial real estate loan group in the whole of Florida!
We service all counties and cities throughout South Florida. However, if you need any of these services in other cities throughout the state of Florida, please contact us. See what services we offer below: