Commercial Real Estate Financing
Why Financing Was Needed
As demand for retail buildings increased, this construction business (and others in the area) were busy and expected to stay that way for a good long while. This is a good thing in terms of revenue and success for the building. However, the influx of customers also meant a need for extra money. When more projects are occurring, payroll costs go up. In addition, more materials and equipment are needed to get everything done. As things got busier, it was clear that financing would be needed to keep up with all the work the company was taking on.
How Much Money Was Needed?
It took quite a bit of research and brainstorming to determine how much money would be needed to handle the demand. On top of that, the company decided it would be better to have access to additional cash in case it was needed. After the numbers were calculated, it was decided that a $300,000 loan would be the best option. It would be enough for more employees, equipment, and material to handle new jobs as they were contracted.