If you own a self storage facility, you have many financing options. However, the traditional route may be cumbersome and take more time than you prefer. Fortunately, you can get bridge loans through HML Solutions. This alternative financing is fast, flexible and doesn’t require the same level of paperwork to qualify.
What Is a Bridge Loan?
Bridge loans are short-term financing options meant to bridge the gap between the cash you have on hand and the profit you expect in the near future. They’re often used to purchase an investment property or even owner-occupied housing. However, their uses aren’t limited to real estate.
What Are the Benefits of Bridge Loans?
One of the biggest benefits of bridge loans is how quickly you can get approved. Most business loan applications take a month or more to get approved because banks need to review and verify financial information. In contrast, bridge loans require much less paperwork, which means a faster approval time. You can get cash in only a few weeks, which allows you to jump on fleeting business opportunities.
No Prepayment Penalties
In most cases, lenders don’t charge prepayment penalties on bridge loans. Since this financing is short-term, this is a massive boon, as you can save on interest by paying off the loan before it ends. In fact, bridge loans are designed for a large payoff once the borrower makes a profit.
Many bridge loans begin with an interest-only payment period. While this means nothing goes toward the principal unless you overpay, it also means you have time to earn the money needed to make the payoff.
Short Loan Terms
Some business loans can last between five years and a decade, but that timeframe isn’t always useful to investors. Bridge loans typically last between 18 months and two years, so they’re the perfect option if you want short-term financing.
How Can You Use Bridge Loans To Finance Self Storage?
So, how does a bridge loan help you expand your self storage business or otherwise turn a profit? It provides working capital, so you have the freedom to pursue your interests. While there are many ways to do this, future development, property investment, and business acquisition are the most common.
To expand your enterprise, you can use your storage facility as collateral for a bridge loan. Once you’ve obtained the funds, you can build a new location to generate the revenue needed to pay off the loan.
You may be interested in improving what you already have. With a bridge loan, you can upgrade your facility and turn a profit even as you invest. Improvements should increase the value of your business so you can profit if you sell.
Bridge loans can also be used to purchase existing businesses. Once you take over operations, you can put profit toward paying off the loan.
Where Can You Find Hard Money Financing?
HML Solutions can help you find the perfect hard money loan for your situation. Whether you want to purchase a new facility or expand the one you have, we can provide working capital. For more information, give us a call today.