How Can I Get a Loan For a Warehouse?

The global warehouse industry is expected to increase by $147 billion by 2026. Influenced by e-commerce growth, warehouses have an average size of 181,370sq ft. However, warehouse size are expected to grow larger with every passing year.

Warehouse financing (aka warehouse loan) is a loan extended by a financial institution to a company, manufacturer, or processor to help acquire a warehouse for their business.

The borrower’s existing goods and commodities are transferred to the warehouse and are used as collateral for the loan. The loan is primarily used by smaller, privately-owned companies in commodities-related businesses to finance warehouse mortgage.

Global Capital Partners Funds offers a variety of warehouse acquisition financing in NY. The firm offers industrial and warehouse loans that have a worth up to $20 Million with competitive pricing.

Here are a few tips to help you secure a warehouse loan.

Good Financial Records

As soon as the loan provider receives your application request, they will analyze your financial records. Make sure you keep an accurate income statement for the loan application approval.

Banking institutions will review a minimum of three years of tax returns, while others might not even care about you reporting to the government.

Most traditional and private money lenders are more interest in your loan repayment history. The clearer the financial records, the stronger your case.

Clean Personal Credit Record

After your business statements and records, the lenders want to see how well your credit records are. No matter which financial institution you choose, whoever finances your warehouse loan WILL REVIEW YOUR PERSONAL CREDIT.

Regardless of how small the amount is due, pay the bill on time and make your accounts current before applying for a loan.

Good Record of All Property Improvements

Most warehouse finance providers want to know exactly how much money you have invested in your commercial property over the years. So, be prepared for lots of questions.

Be accurate when you provide the total amount of your investments made on the building.

Instead of giving a rough estimate, give a thorough list of improvements along with their costs.

Be Clear with the Reason of Loan

It would only be best if you made a non-refusable case to get the loan approved. Tell your lenders how the loan will benefit you and the business. Moreover, provide a convincing reason why they should be the ones to finance it.

Provide the details about the exact amount needed and justify it. Follow by how it can generate more revenue for your business and aid in loan repayment.

Pride of Ownership

There’s nothing more convincing for a lender than to see a clean and well-maintained business property. Showing pride in ownership makes a good and trusting impression that will only make your case stronger. A cluttered and poorly maintained and managed warehouse will convey the wrong message to potential financers.

Make sure you maintain a clean and functional workspace to improve your chances of loan approval.

If you’re still wondering how to go about your application regarding commercial financing for acquisition, reach out to Global Capital Partners Funds. From the very first consultation, their team of experts will guide you through the process while providing tips to achieve your business goals.

Categories: Finance

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