A retail store doesn’t become a success overnight. It requires hard work, dedication, creativity, and lots of money to start a business. Not having enough capital is why most investors and entrepreneurs abandon their dream without trying. Fortunately, with various funding alternatives on the market today, purchasing a retail space, commercial real estate property, or multi-family residential property isn’t as impossible as it used to be. Listed below are four financing options to purchase a retail space.
1. SBA Loans
If you are starting your business from scratch, SBA loans might be your best financing option. The Small Business Administration (SBA) offers several types of loans, increasing your chances of getting the capital needed to buy a commercial real estate property. However, there are some restrictions. To get an SBA loan, apply at your local bank branch.
2. Real Estate Loan (SBA 504)
Want to make a commercial real estate purchase? The SBA 504 loan program is an excellent option. These fixed-rate loans can provide you with a maximum amount of $5.5 million, saving you from going into debt. However, the 504 loan can only be used to buy real estate and not to fund your working capital.
3. Personal Loans
People with good credit scores (above 650) can easily qualify for a personal loan. While a personal loan might not get you all the money that you need, it covers a significant amount of up to $50,000.
4. Home Equity Loans
Did you know that you can leverage your house to get a loan? A home equity loan makes it possible for you to get a large sum of money with an interest rate between 8% to 3% and a repayment timeline of up to 30 years.
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When it comes to purchasing a retail space, Milbrook Properties Ltd is the one-stop solution to all your commercial real estate needs. Our professionals can help you with acquisition, leasing, and property management and maintenance. Call us to talk to a real estate agent today!