A common problem or situation that companies or businesses face is having inventory for sales and offering services. However, they are unable to finance other needs and expenses that can lead them to be successful, but it is not impossible to solve this if they choose to apply for warehouse loans.
Most types of credits or loans work with a simple system: you request funds for a specific purchase, project, or need, and if the lender approves it, you get the money and start paying for it in the estimated quotes and usually, what you buy or acquire with the money is used as collateral.
But what happens when you do not have assets or properties that can work or be enough as collateral? You can rely on unsecured loans but we suggest you avoid them unless they are extremely necessary, especially if you are in the situation we previously mentioned for several reasons:
- You can end up losing instead of winning something.
- Interest rates are higher for unsecured loans.
- If you do not have collateral on your own, you can apply for warehouse loans and use the inventory that has no use for you right now unless you invest in other aspects of the business.
You can use the money obtained from these loans to finance several expenses: partially fund commercial properties, buy more space for storage, maintain cash flow, and other needs involving your business. Some particulars that are left with inventory but do not want to continue the business decide to apply for the loans in order to finance personal expenses or projects, which is also possible with warehouse loans. That being said, it is not that simple to access them if the lenders you have in mind involve banks, financing groups, and other regular lending institutions.
Most of them do not offer warehouse loans but rather focus on using the collateral for other types of credits, which also limits you to what you can do with the funds received. Instead, in private lending companies like ours, Commercial Real Estate Loan Pros of Jacksonville, the previous benefits mentioned and expenses are available due to the terms and conditions established as private lenders. We do not have limits as long as you are meeting the requirements, following the agreement, and spending the funds for the needs and goals you mention before accepting or during the application.
How do warehouse loans work?
The process is the same:
- Apply for the loan by fulfilling requirements and sending them our way.
- Specify the sum of money needed, how much you expect us to cover, and how you will use it.
- If your loan is approved, we will take the collateral you have to include in your application—specify the type of inventory you have—and set quotes for repayments.
- Whenever you miss a payment, we will retrieve part of the inventory that corresponds to the sum of money you missed in the quote.
What makes them different from usual loans is how we proceed to retrieve collateral if you do not pay. However, at Commercial Real Estate Loan Pros of Jacksonville, we are quite flexible with all the conditions we establish and you are welcome to negotiate them before accepting the loan whenever we approve it.
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.