Warehouse Loans
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A common problem for companies is having enough inventory and assets, but not the required funds to run the business without issues. When this happens, they can either choose to sell all the inventory or go for a much faster approach: relying on warehouse loans.
If you are facing this problem or a similar one where you need more capital to afford a new project, expansion, or expenses from your business, you can choose to use the inventory you are saving and usually, not using, to obtain the required funds. Warehouse loans work in a way that allows you to use the inventory and assets as collateral to finance and request the credit and get the funds without risking other elements.
Of course, the idea of the loan is to repay the money with regular payments just as usual credits, but in case you miss one, the lender will retrieve part of the inventory based on the amount to be paid during that milestone. This means you do not have to worry about losing an entire property—for example—or paying more interest rate due to missing a payment. However, the problem with warehouse loans is that they are not too common to find since banks, pension funds, insurances, and similar lenders, tend to limit their options to traditional and regular credits.
As a result, private lending companies and individual lenders are the options available, and although they are better than regular options, taking the time to find the right one for your project is crucial. Our company, Commercial Real Estate Loan Pros of Tampa, offers great warehouse loans based on the assets and inventory you can offer as collateral but also, for what you will use the funds of the loan. Most of the time, warehouse loans are focused on helping companies to finance projects, not to cover the personal expenses of the owner and employees. Therefore, you need to let us know what you need the funds and the plans for them to determine if we can approve the loan or not.
Terms and conditions for warehouse loans
Compared to regular or traditional credits, the difference is not too big. It is a matter of the purpose of the loans, the collateral accepted to request them, LTV ratio, and interest rates. The last two factors vary depending on the lender. Some private companies offer from 50% to 75% when it comes to the LTV ratio, which means they can offer this total amount for the funds you need and estimate the number of assets and items from your inventory that can cover them as collateral.
However, we offer up to an 85% LTV ratio and our interest rates go from 3% to 7% most of the time. This means we are quite competitive but also flexible to allow you to access the funds you need. To request the loans, you only need to send us your application using our website or ask us all your questions before doing so. Our team at Commercial Real Estate Loan Pros of Tampa will take care of the request and is going to clear your doubts in no time.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.