Nothing spices up a business owner’s week quite like finding out you owe $150,000 in unpaid sales tax.
That’s what happened to a New England auto repair shop after the owner discovered years of payments he thought were being handled…* weren’t.*
Penalties and interest had piled on too, because apparently the tax authorities were not interested in hearing, “I thought my accountant had it.”
So now the business needed a lot of capital.
There was just one problem: the shop itself didn’t generate enough cash flow to support the size of loan needed.
Then the building entered the conversation.
The owner also owned the commercial property the business operated from.
No mortgage. Significant equity.
That changed things.
Using the property, financing was structured at roughly 50% of its appraised value, unlocking about $227,000.
Enough to deal with the tax problem and leave some additional capital in the business.
And that’s really the point.
If you own commercial real estate, the equity in that property may give you financing options that the operating business alone can’t.
It could potentially help with expansion, equipment, working capital, acquisitions, refinancing, or one of those unpleasant surprises nobody bothered putting in the budget.
**Read: **How Commercial Real Estate Can Unlock Business Capital
And if you own commercial property and want to know what options might be available to you, Credit Banc can take a look at the property, the business, and what you’re trying to accomplish.
Check Eligibility
Talk soon,
Matt & Luigi
The Weekly is sponsored by Credit Banc.
Own commercial real estate? The equity in your property could potentially help fund:
Expansion • Equipment • Working Capital • Refinancing • Acquisitions
Credit Banc works with 100+ lending partners across conventional, SBA, bridge, owner-occupied, investment property, and other commercial real estate financing. Explore your options at creditbanc.io
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