Warehouse Loans
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When companies do not have enough funds or any collateral to finance loans and request them, there is a way to work out the process: using inventory or products that are just stacking but are valuable. Warehouse loans allow businesses to use the inventory that has no use as a way to obtain more funds. However, aren’t the items considered collateral in the first place? Yes and no.
Most types of loans work with either asset that is valuable at once, in other words, you usually use one or two in order to have collateral for the loan you are requesting. Therefore, inventory and several items are not usually considered as collateral since it is hard to keep track of them, their value can fall behind easily, and it is hard to provide funds based on their worth.
This is why many lending institutions do not like warehouse loans and choose not to offer them in the first place. However, if you are a company that is in the situation mentioned in the beginning and finds a lender with them available, you should definitely take the chance. The best way to have luck finding and requesting warehouse loans is by relying on private lending companies instead of usual lenders like banks and financing groups. Private lenders not only have more than them available but also offer great terms and conditions to allow companies and particulars to access funds without accepting unfair deals.
At Commercial Real Estate Loan Pros of Tallahassee, we focus on financing projects for you as long as your inventory is worth the sum of money you are requesting and if it doesn’t, we will consider a loan that adapts to what you can afford. That being said, keep in mind that warehouse loans are only for specific projects and needs, which are related to companies and businesses’ expenses and plans.
Therefore, you cannot use the funds for personal expenses unless you explain to us the situation and our team evaluates the situation. We will not put limits, but we have to make sure that the money will be used properly and accordingly to what you are requesting as well.
What do we accept as collateral?
Or more like, what type of items and inventory can you offer as one? Overall, any person and company can approach us with the inventory available and write it down during the application for our team to evaluate its worth. However, this does not mean we will accept anything just based on the value. Certain companies and types of items have advantages with us due to how profitable they are and we as lenders have to make sure we are not losing in this loan.
Now, we still remain to be flexible and do our best to accept any type of inventory you can offer as long as you are willing to accept its real value and the funds we can offer based on it. With this in mind, remember that the main condition or term of how these loans work lies in us retrieving the items whenever you miss a payment or two. This is why we encourage you to ask all your questions and clear doubts with our team at Commercial Real Estate Loan Pros of Tallahassee before you decide to apply for it.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.