How it works
$50,000 to $5 million
TIME TO FUND
2 to 4 weeks
1 to 5 years
6% and up
Amerifi helps businesses like yours
with flexible financing options, secured by the commercial real estate your business owns, to grow, expand, and overcome new challenges.
The most valuable thing most people will own in their lives is their home. For entrepreneurs, a business can become far more valuable than a house -- if you can build it to a large enough scale.
But what do you do when your business needs capital to break through barriers to growth?
Most people tap the equity in their homes when they need a big pool of capital for personal use, whether it's to cover unexpectedly large expenses, finance a dream, or just pursue an opportunity. Business owners with commercial property assets can do the same thing, by leveraging their real estate equity to obtain secured financing at preferable rates.
It’s important to distinguish this type of financing from more traditional commercial real estate loans, which are typically structured to finance the purchase of real estate as an investment property or for ongoing business use.
We do not (currently) finance such purchases, but our commercial real estate financing is designed for small businesses that already own property but need capital for growth or expansion.
Businesses with high interest rates on their existing loans may also be interested in obtaining a commercial real estate loan to refinance current at more favorable repayment terms.
By collateralizing your loan with the most trustworthy and valued type of asset -- real estate -- you’re likely to obtain better terms than apply to your outstanding unsecured loans.
There are two primary forms of commercial real estate financing for growth or expansion: term loans and business lines of credit. You can collateralize loan amounts of up to $5 million in financing with commercial property through either type.
A term loan is our most mortgage-like financing option. You’ll receive a lump sum of capital on approval, and you’ll be expected to repay the loan over a period of one to five years. Anyone who’s ever dealt with residential mortgages can understand the structure of a business term loan.
Why get a term loan from Amerifi rather than from your bank or credit union via the Small Business Administration (SBA)?
For one thing, we’ll get you your funding faster, and our funding network is far more likely to approve you than a bank. Secured term loans are typically processed in two to four weeks.
If you’ve ever applied for an SBA loan, you probably waited months for the decision -- and those decisions are frequently unfavorable.
Only about a quarter of all businesses applying for bank loans will be approved, and an SBA loan process takes anywhere from three months to over a year. When you’ve got bills coming due or big projects to set in motion, you won’t have that kind of time to wait around.
A term loan is also distinct from the SBA 504 loan, which is intended only to finance the purchase of new or additional assets, not the refinancing or equity utilization of existing assets.
You’re likely to run into difficulties if trying to obtain secured financing from the SBA. A 504 loan is even more restrictive than a standard SBA loan. Approval is currently limited to businesses that can create or retain at least one job in their community for every $65,000 of SBA 504 financing disbursed.
A business line of credit functions similarly to a personal credit card, but with a much higher limit.
Once you’ve been approved, you can access the funds almost instantly. Like a credit card, you’ll pay interest only on the amount you’ve used from your business credit line. Most business lines of credit have one-year renewable terms.
If you pay your balance down on time, you can use a business line of credit over and over, for many years. This is what’s known as revolving credit, in contrast to installment loans or term loans, which provide lump sums upfront and are repaid over defined loan terms.
There’s generally no prepayment penalty for a business line of credit. You can also pay off your balance early to reduce any interest you’re expected to repay, just like a personal credit card. If you keep your outstanding balance low or even paid off, you’ll wind up owing very little in interest over the life of your business credit line.
Got any questions about our commercial loans?
Get in touch with us today by filling out a loan application, sending us a message through our chat app (accessed via the bubble in the lower right corner of the screen), or by giving us a call at the number listed further down on this page.
Commercial real estate financing for growth often works well for these types of businesses:
Many restaurants and bars, particularly chain or franchise establishments, may seek to control their costs by owning the real estate in which they prepare food and drinks. This can pay off over the long term, but in the short term, it can lead to trouble if business becomes tighter than usual.
If a big chunk of your earnings go back towards monthly payments on your existing real estate loan, it can be difficult to expand through marketing, facility improvements, or even securing higher-quality ingredients.
All businesses need to be able to reinvest in themselves to expand, but the restaurant industry has famously thin margins. This forces many restaurant entrepreneurs to push for getting big fast, in order to fund expansion through volume alone.
Tapping the equity in your commercial real estate can give your restaurant the capital wiggle room needed to drive smarter, more strategic, and more sustainable expansions.
Any construction company of moderate or greater scale will need lots of equipment. As your construction business grows and takes on larger and more challenging projects, its need for equipment will expand dramatically. You’ll need a place to store all that equipment, not to mention a place to house your growing back-office workforce.
Many construction companies will eventually own some real estate, for office buildings and/or equipment storage and maintenance use. Equipment loses value over time, making it difficult to refinance, but commercial real estate can provide your construction business with a favorable form of equity to tap when it needs quick financing for growth or expansion.
MEDICAL AND HEALTHCARE
If you want to make stuff, you need somewhere secure in which to make it.
Manufacturing, perhaps more than most businesses, depends on stable fixed expenses like rent or mortgage costs. It’s important to control as many costs as you can when so much of your resources are tied up in variable costs such as materials, equipment, and labor.
Buying the property you make stuff in can make a lot of business sense, and it can pay off down the line if you use the equity in your property to finance growth or expansion.
Your cash flow may not always be strong enough to pay for marketing, new equipment, or new hires, particularly if you operate a contract manufacturer that depends on a small number of clients. Using company assets to obtain flexible commercial loans can help manufacturers bridge the gap in lean times.
E-tailers might get away with outsourcing their property needs to Amazon and Fedex. But if you’re managing a physical storefront, you may very well be a commercial property owner, too.
Commercial landlords are notorious for rental agreements that grow along with the retail businesses seeking them. This can make it difficult to plan for the future if additional profits will have to line your landlord’s pockets instead of paying for business expansion.
On the other hand, the decline of malls, and the revival of high-density walkable shopping districts, have opened up more opportunities for enterprising retail entrepreneurs to own the land as well as the brand.
If you’ve stabilized your rent by buying real estate, but your retail company is still stuck without the funds needed for growth, it might be time to consider taking out a loan against the property.
If you’re a one-rig transportation business, you can probably park in a reliable lot or even in your own driveway when you’re not on the road.
As you grow, you’ll need a space for maintenance and repair, as well as a hub for back-office activity. Renting a lot somewhere and parking an office trailer on it might serve some of those needs, but it won’t be enough forever.
Trucking and transportation companies that have scaled up may not depend as much on real estate as some of the other businesses on this list, but real estate is nonetheless part of the equation for business growth.
A heavy-duty truck, like any piece of durable business equipment, will lose value over time. So will any equipment needed to repair those trucks.
A trucking company looking to retain and grow asset value over time may naturally look to real estate ownership as an option, and when the business needs capital to expand, real estate assets will be one of the easiest ways through which to obtain it.
Advantages of commercial real estate loans for growth
- Flexibility (use funds for any business need).
- Easier and faster application process than similar bank loans.
- Longer loan terms than most other options.
- Lower interest rates than most other options.
- Large amounts available.
- Financing available for high-risk businesses.
Drawbacks of commercial real estate loans for growth
- More stringent requirements than some other forms of financing
- Requires your business own commercial real estate.
- Generally faster repayment terms than commercial mortgages.
If you have...
TIME IN BUSINESS
(high-risk: 3 months)
$500,000+ per year
no min. for high-risk!
You could be eligible for up to $5 million in commercial real estate funding today!