Ice Cream Shop Has A New Flavor
Commercial Real Estate Financing Ice Cream Shop Has A New Flavor
Author: Valerie Mellema
Date posted: 04.13.23

One of the most popular sweet treats on the planet is ice cream. Whether you’re a fan of traditional vanilla or exotic strawberry kiwi, there’s likely a tasty ice cream out there that you love on sunny days. The owners of a small ice cream shop on the West Coast had always felt the same way. They started their shop with the intention of offering great flavors to the residents of the city on hot days.

When Demand Goes Beyond Availability

 

As time passed, the ice cream shop gained in popularity. Their penchant for changing the menu with the season had people stopping in time and time again. Eventually, it was a staple of the community and a spot where you could run into friends and family anytime you wanted a cone or a bowl.

 

After a while, the owners started to consider whether it would be a good idea to open a second location. They did research and decided it could be a great way to grow even larger. However, they knew they’d need to find a way to finance the second location if they went through with it.

Ice Cream Shop Has A New Flavor

The Cost Associated with Dessert

 

Before deciding for sure whether to go forward with the idea, the owners set out to learn more about what the costs would be. If they did open a second location, they wanted it to be just as good as the first one. The original location has been expanded and updated over time so the costs were likely to be more than the owners could comfortably pay from their own bank accounts.

 

Looking into the options gave them the realization that they would need about $500,000 to get things in order. This would take care of getting the real estate they would need. Then they could dip into savings and other options to outfit the shop, bring on employees, and start marketing the location.

 

Which Loan is the Best Option?

 

Since the main item to finance would be real estate, the owners looked into financing that focused on that aspect. There were a couple of options that stood out in the end, including commercial real estate financing.

 

What Makes Commercial Real Estate Financing Special?

 

There were a lot of reasons to move forward with commercial real estate financing. First, it has a high loan-to-value. In addition, it can be as short as 10 years or as long as 25 years, depending on the needs of the business.

 

The max amount of these loans go pretty high so hitting $500,000 wouldn’t be a huge issue. In addition, interest rates were low, with funding available within three months. It’s one of the most affordable options and provides traditional monthly payments.

 

How Are Things Going Today?

 

Since the loan was approved and the money was transferred over, the ice cream shop quickly went to work to get the new location ready. It has now been equipped with new workers and the grand opening brought a crowd of people. It’s been busy and filled with customers since the doors first opened.

 

Right now, the brand has no plans of expanding again anytime soon. They’re paying off their commercial real estate financing and learning to handle the work of two locations. Things are going well and the future looks like it could be very bright, no matter what direction the owners move in.

Ice Cream Shop Has A New Flavor
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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