If you’re a business owner looking to expand but struggling to find the funds due to limited loan options on your property value, you’re not alone. Many business owners assume they can only access loans for a fraction of their property’s worth. However, several financial institutions and non-banking financial companies (NBFCs) now offer loans based on the full value of your property—and in some cases, even up to 200%.
This type of financing is typically structured as a term loan, allowing borrowers to leverage the total appraised value of their property as collateral. However, securing a loan for 100% of your property’s value isn’t solely dependent on the property itself. Lenders will look at several critical factors, such as:
- Sales Performance: Consistent and strong sales history indicates reliable revenue streams.
- Debtor Cycle: The efficiency of your accounts receivable management shows how effectively your business turns sales into cash.
- Stock in Hand: Inventory levels can reflect a business’s readiness to meet demand, impacting cash flow.
- End Use of Funds: Banks typically favor purposes that can drive growth, like working capital, building construction, and equipment or machinery purchases.
Preferred Uses for Full-Value Property Loans
The primary uses for these loans include working capital to boost day-to-day operations, funding for new construction projects, and the purchase of essential machinery or equipment. By aligning loan usage with growth-driving activities, businesses can unlock new opportunities without draining existing resources.
Don’t Let Funding Limit Your Growth
If you’ve hesitated to pursue new opportunities due to loan limitations based on property value, consider consulting with experts who can guide you through obtaining full-value property financing. At AskMeFinance, we specialize in helping businesses like yours find the right financing solutions, so you don’t have to put your growth on hold.
Ready to explore 100% financing on your property’s value? Reach out to us today and let’s find a solution tailored to your business needs!