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, the company experiences an increase in payroll costs. As things got busier, the company realized that they would need financing to keep up with all the work they were taking on.
How Much Money Did They Need?
The company conducted extensive research and brainstorming to determine the required amount of money to handle the demand. Additionally, the company chose to have access to extra cash if necessary. After calculating the numbers, they made the decision to opt for a $300,000 loan, which would cover the expenses of hiring more employees, acquiring equipment, and purchasing materials to handle new contracted jobs.