Self liquidating project loans

27-Apr-2020 22:29 by 3 Comments

Self liquidating project loans - Ray gordon books chat room

In 2010, the Small Business Administration (SBA) made its loan products available for self-storage properties.This gave industry owners who were eager to acquire, build, expand or renovate facilities a new financing avenue.

You’ve probably thought a lot about how to start or expand your self-storage business.With a working-capital loan, Lindsey was able to take a property that was previously mismanaged with minimal cash flow and turn it into a new and improved facility.“This capital was put directly toward various capital improvements—both physically and operationally—that aided us in the repositioning of the asset in the market,” he says.Unlike conventional lending, 7(a) loans offer attractive equity injections, 25-year fully amortizing terms, and no balloons or financial covenants.Additionally, working capital can be financed, and there’s a prepayment penalty of only three years.To apply for a loan, you’ll need the following: SBA lenders look for many of the same traits in borrowers as conventional lenders.

These are often referred to as the five Cs: credit, collateral, character, cash flow and commitment.

Do you want to build a new facility or acquire an existing one? Most important, how will you obtain financing for your project?

There are many loan options available, but finding the one that meets your business needs is key.

This, in part, is governed by the investment instrument.

Typically, for equity and equity-like investments, we will exit after a period of three to seven years, depending on the nature of, and stage at which we invested in the business.

“Without this type of loan, we wouldn’t have been able to take on a project of this capacity.” Lindsey’s success story is just one of many.