by ARTIS COMMERCIAL CAPITAL | Jul 11, 2023 | Blog
Are you a small business owner looking for financing options? Traditional bank loans can be difficult to get, especially if you have bad credit or lack the necessary collateral. Fortunately, there is an alternative—asset-based lending. Asset-based lending provides businesses with access to capital while allowing them more flexibility than traditional loans.
What Is Asset-Based Lending?
Asset-based lending is a form of financing that relies on the value of a company’s assets as collateral. This type of loan can be used to finance a variety of needs, including starting up a business or expanding operations. It offers businesses more flexibility than traditional bank loans because it focuses on the value of the assets rather than creditworthiness.
Easy to Obtain
One advantage of asset-based lending is that it is easier to get approved for compared to traditional bank loans. As mentioned before, banks typically require good credit and collateral, which many small businesses don’t have access to. With asset-based lending, all you need is an inventory or other assets with sufficient value—you don’t have to worry about your personal credit score or lack of collateral.
More Capital then Institutional Loans
Another advantage is that asset-based loans can provide businesses with more capital than traditional bank loans. Because the loan is secured by assets, lenders are willing to offer larger amounts of money than they would for an unsecured loan. This can be especially useful for small businesses that need extra funds to grow their business but may not qualify for a traditional bank loan.
Flexible Repayment
Finally, asset-based lending offers flexible repayment options. Unlike traditional bank loans, which require regular monthly payments over a fixed period of time, asset-based loans allow you to pay back the loan amount in installments or on an as-needed basis based on your cash flow. This makes it easier for small businesses to manage their finances without worrying about meeting strict repayment deadlines.
Getting Approved for Asset-Based Lending
To increase your chances of getting approved for an asset-based loan, make sure you have a detailed business plan that outlines how the money will be used and why it is needed. Additionally, provide the lender with accurate information about your assets—including inventory count, estimated value, and past performance data—so they can evaluate your application objectively. Finally, be prepared to pay fees associated with this type of loan; these may include appraisal costs or other setup fees.
In conclusion, asset-based lending provides small businesses with access to capital while offering more flexibility than traditional bank loans. By understanding how asset-based lending works and taking steps to increase their chances of approval, business owners can take advantage of this unique financing option to get the funding they need. Contact Artis Commercial Capital today to learn more about our asset-based lending solutions.
by ARTIS COMMERCIAL CAPITAL | Jul 4, 2023 | Blog
If you’re a business owner, you know how important it is to have access to the right kind of funding in order to help your business grow. One option that many businesses are turning to is purchase order financing. This type of financing can be used for a variety of purposes, from purchasing inventory and supplies to expanding operations or hiring new employees.
How Purchase Order Financing Works
Purchase order financing is a type of short-term financing that enables businesses to pay for goods and services they have ordered from suppliers. With this type of funding, businesses can finance purchase orders for inventory or supplies without using their own cash flow or borrowing money from a traditional lender. Purchase order financing is an attractive option for many small businesses as it provides them with the necessary funds to grow without having to wait months or years until the product is sold.
This type of financing works by allowing a third-party lender to provide funds in exchange for a portion of the total cost of the purchase order that will be paid on delivery. The lender assumes part of the risk associated with completing the project, so they will typically require some form of collateral or guarantee before approving a loan. Once the order is fulfilled, the lender will receive their portion of the total cost plus a fee for providing the funding.
Growing Your Business
Purchase order financing can be beneficial to businesses in a number of ways. It can help businesses that need funds quickly to purchase supplies and inventory without having to dip into their cash reserves or take out loans from traditional lenders. This type of financing also helps companies expand operations without waiting months or years until product sales are sufficient enough to cover such costs. Additionally, it can help businesses build relationships with suppliers by allowing them to pay suppliers on time for goods and services they have ordered.
Overall, purchase order financing is an attractive option for many small business owners as it provides them with the necessary funds to grow without having to wait months or years until product sales are sufficient enough to cover such costs. If you’re looking for a way to finance your purchase orders and help your business expand, this type of financing might be right for you. Reach out to the team at Artis Commercial Capital today to learn more about our purchase order financing program.
by ARTIS COMMERCIAL CAPITAL | Jun 27, 2023 | Blog
Investing in commercial real estate is a great way to generate passive income and build long-term wealth. However, diversifying your portfolio is essential if you want to maximize your returns and minimize risk. By investing in different types of properties, you can spread out the potential risks associated with any one property or market. The key is to understand the various types of commercial real estate investments available and how they fit into your overall strategy.
Invest in Different Property Types
One of the best ways to diversify your commercial real estate portfolio is to invest in different types of property, such as office buildings, retail stores, multi-family dwellings, and industrial spaces. By investing in a variety of property types, you reduce the risk associated with any one particular market or sector. Investing in multiple properties can also provide the benefit of cash flow diversification, allowing you to spread out your income across various types of investments.
Invest in More than One Location
Another way to diversify your commercial real estate portfolio is to invest in different geographic locations. By investing in properties located in diverse economic climates and regions, you reduce the risk associated with any particular market or location. Investing in different markets can also provide the benefit of diversifying your tenant base, allowing you to spread out income across various types of renters.
Invest in Development Projects
Finally, it’s important to diversify your commercial real estate investments by investing in different stages of development. Investing in both newly-constructed and existing properties could yield higher returns over time because these investments can take advantage of different tax benefits and depreciation schedules. By investing in properties in various stages of development, you reduce the risk associated with any one particular market or sector.
Diversifying your commercial real estate portfolio is essential to maximizing your returns and minimizing risk. By investing in different types of property, geographic locations, and stages of development, you can spread out the potential risks associated with any one market or sector, allowing you to maximize your return on investment. Artis Commercial Capital provides financing to property investors that want to expand and diversify their portfolios. Contact our offices today to explore your options.
by ARTIS COMMERCIAL CAPITAL | Jun 20, 2023 | Blog
Mezzanine financing is a form of debt capital that can be used to finance commercial real estate investments. It provides an alternative source of funding for property investors who are not able to secure traditional bank loans or other forms of conventional financing. Mezzanine financing has become increasingly popular in recent years as it offers the potential for higher returns than traditional methods and can help bridge the gap between equity and debt when there isn’t enough capital available from either source alone.
An Overview of Mezzanine Financing
Mezzanine financing typically involves a loan secured on the value of a property, but with a repayment structure that is more like equity than debt. The lender will usually require some form of security, such as a second mortgage or a lien on the property, and if the borrower defaults on the loan then the lender can take possession of the property. A mezzanine loan can provide a significant amount of capital for the borrower and often offers high returns for the lender, which is why it has become an attractive option for both sides.
Mezzanine financing is seen as a riskier form of lending by banks and similar lending channels, which is why commercial and private lending firms offer this solution. The repayment terms are also less flexible and typically require more frequent payments in order to reduce the lender’s risk. This can make it difficult for some borrowers, especially those with limited cash flow or high levels of debt, to keep up with their repayments. For these reasons, mezzanine financing is typically reserves for high-net worth property investments.
Mezzanine financing can be a great option for property investors looking to finance their next project. It provides access to capital that isn’t available through traditional channels, and it’s often the only way to bridge the gap between equity and debt when there isn’t enough of either source alone. Contact Artis Commercial Capital today to learn more about our equity financing solutions.
by ARTIS COMMERCIAL CAPITAL | Jun 13, 2023 | Blog
Commercial real estate financing is an important and often complex part of the industry. Knowing the difference between small balance and large balance financing can make all the difference when it comes to securing a loan for your project.
Small Balance Financing
Small balance loans are typically used for smaller commercial real estate projects such as purchasing a property, refinancing an existing loan, or making improvements to the property. These loans usually range from $1 million and below, with interest rates that can be fixed or adjustable, depending on your needs and creditworthiness. Smaller balances are often easier to secure than larger loans and they often come with more flexible terms, such as lower down payments and longer repayment plans.
Large balance loans are typically used for projects that require a much larger amount of capital, usually over $1 million, and often ranging into the billions of dollars. These loans can be used for anything from renovations to constructing an entirely new building. The interest rates on these types of loans tend to be higher than on small balance loans, and the repayment plans are often longer with more stringent terms. Large balances also require a greater amount of collateral, such as existing property or other assets, making them more difficult to secure.
The type of loan you choose will ultimately depend on your particular needs and situation. If you are looking for a short-term solution or need more flexibility in the repayment options, then a small balance loan may be best. Artis Commercial Capital provides financing solutions for both small and large development projects. Whether you need $1 million or your project requires funding in the billions of dollars, we have you covered. Contact our team today to learn more.
by ARTIS COMMERCIAL CAPITAL | Jun 6, 2023 | Blog
When you’re looking to secure funding for a large development project, you need to make sure that your pitch is on point. Investors want to know why they should put their money into your project and what the potential returns are. Crafting an effective pitch is no small feat, but if done correctly it can be the key to securing the funds needed for success.
Set Expectations
When crafting your pitch, it’s important to remember the expectations of potential investors. Investors aren’t looking for a laundry list of features or benefits; they want to know why your project is worth investing in and what kind return they can expect. Start by clearly articulating what problem or need your project will be addressing as this will demonstrate that there is a real-world need for your project and that it has the potential to be successful.
Leverage Data
Once you understand what investors are looking for in an effective pitch, you should focus on presenting the data in an engaging way. While raw numbers and facts can help demonstrate the potential of your project, they won’t necessarily draw attention or convince investors to invest. Instead, consider using visuals such as graphs or charts to help bring your data to life and show potential investors exactly how successful the project could be.
Appeal to Emotions and Generate Excitement
Finally, while an effective pitch should be focused on facts and figures, don’t forget that a large part of any pitch is emotion. Investors want to feel like they’re taking a risk on something that is worth it and has the potential to succeed. Demonstrating a deep understanding of your project, as well as its potential benefits, will help to build confidence in investors, while also emphasizing why they should trust you with their money.
By following these tips, you should have the confidence to craft an effective pitch for any large development project and secure the funding needed for success. Investing in a large project can be intimidating, but with the right preparation and presentation you can make sure that your pitch is persuasive and effective. Artis Commercial Capital provides financing up to $5 billion and more for large and innovative development projects. Contact our team today to get the funding you need.
by ARTIS COMMERCIAL CAPITAL | May 30, 2023 | Blog
Commercial construction projects are complex endeavors that require careful planning and preparation. From start to finish, there are a number of steps involved in the process. These include obtaining permits and approvals, hiring contractors, purchasing materials, and managing the construction timeline. With so many moving parts, it can be difficult for business owners to understand what is required for a large commercial construction project.
Permits
The first step in any commercial construction project is acquiring the necessary permits and approvals. Depending on the size and scope of your project, you may need to submit an application or obtain permission from local authorities. It is important to research all applicable regulations and requirements before beginning the construction process to ensure compliance with local laws. This will help streamline the project and avoid any costly delays due to incorrect paperwork.
Contractors
Once all permits and approvals have been secured, you can begin the process of hiring contractors for your project. It is important to take your time when selecting a contractor, as they will be responsible for the overall quality of work completed onsite. Be sure to get multiple bids from different contractors and thoroughly review the contracts they provide to ensure all requirements are being met.
Sourcing Materials
The next step is to purchase materials for your construction project. This includes everything from lumber and drywall to plumbing fixtures and light fixtures. It is important to bargain shop for the best prices when purchasing materials, as this can save you a considerable amount of money in the long run. As you purchase materials, be sure to keep an organized list of all items purchased and store your receipts for future reference.
Managing Your Timeline
Finally, managing the construction timeline is a key component to any successful commercial construction project. This includes setting milestones and deadlines throughout the duration of the project as well as establishing goals for each step along the way. By keeping track of progress, you can ensure deadlines are met and all milestones are achieved on time.
Commercial construction projects require considerable planning and preparation to ensure they run smoothly from start to finish. Artis Commercial Capital provides ongoing to permanent financing for large construction projects. Contact our team today to get the funding you need to ensure success from start to finish.
by ARTIS COMMERCIAL CAPITAL | May 23, 2023 | Blog
Investing in real estate has long been seen as an attractive option for those looking to build wealth and generate passive income. Single-family rentals (SFRs) provide a unique opportunity for investors to capitalize on the growing demand for rental housing, while still being able to maintain control over their investments. From high returns on investment and tax benefits, to increased cash flow and appreciation of property value – there are many advantages that come with investing in SFRs.
1. High Returns on Investment
Investing in SFRs can provide a high rate of return, as rental income is often higher than the cost of mortgage payments. This type of real estate investment also has the potential for appreciation over time, providing an added boost to your total returns.
2. Tax Benefits
As an investor, you can take advantage of multiple tax benefits when investing in SFRs. These include deductions for mortgage interest, depreciation of the property value, and a variety of other expenses related to the rental property.
3. Cash Flow
Owning a rental property means that you will have a steady stream of income coming in every month, providing a reliable source of cash flow. This ongoing income can be used to cover the costs of maintaining the property and provide investors with an additional source of revenue.
4. Low Maintenance Costs
Maintaining a single-family rental is relatively inexpensive compared to other types of real estate investments, as they typically require fewer repairs than multi-family units or commercial properties.
5. Appreciation of Property Value
As the demand for rental housing increases, so does the value of rental properties. Investing in single-family rentals can provide a profitable return on your initial investment as the property appreciate over time.
Investing in single-family rentals offers numerous benefits for real estate investors. From high returns on investment and tax benefits, to increased cash flow and appreciation of property value – these investments can be a great way to build wealth and generate passive income. If need funding specifically designed for SFRs, contact the team at Artis Commercial Capital.
by ARTIS COMMERCIAL CAPITAL | May 16, 2023 | Blog
In the past few years, short-term rental properties have become increasingly popular among investors. Whether it’s for real estate investing or simply a way to make some extra money on the side, there are plenty of reasons why more people are choosing to invest in short-term rentals. From potential tax savings to increased flexibility and higher profits than long-term leases, there is much to be gained from this type of investment.
Taxes
When it comes to potential tax savings, short-term rental investments can be extremely beneficial. When you own a long-term rental property, the Internal Revenue Service (IRS) considers your income taxable and requires you to pay the appropriate taxes due on that amount. However, when you invest in short-term rentals, those taxes may be much lower. This can help you save money on taxes and increase your overall profits.
More Flexibility
Another benefit of investing in short-term rentals is increased flexibility. Unlike long-term leases, which are typically locked in for a year or longer, short-term rentals give you more control over when you rent out your property. This means that you can adjust your rental prices depending on demand, as well as make adjustments to the length of stay so that you can accommodate different types of tenants.
Higher ROI
Finally, short-term rentals also have the potential to provide higher returns than long-term leases. When it comes to real estate investing, the amount of rent that you charge is a huge factor in determining the overall profitability of your investment. With short-term rentals, you can often charge more for nightly stays compared to long-term leases, which helps maximize profits. Additionally, because more people are likely to stay at a property on a short-term basis as opposed to long-term, you may be able to rent out your property more frequently.
Investing in short-term rentals can be a great way to make money and save on taxes. With the flexibility, higher profit potential, and low overhead costs associated with this type of investment, it’s no wonder why more people are choosing to invest in short-term rentals. Contact Artis Commercial Capital to get the funding you need to purchase or renovate short-term rental properties.
by ARTIS COMMERCIAL CAPITAL | May 9, 2023 | Blog
Equity financing is a great way for investors to raise capital for large property investments. Equity financing involves raising funds from external sources, such as friends and family, venture capitalists, or angel investors. The investor then gives these external sources a percentage of ownership in the company or asset being purchased with the funds raised. This type of financing can be beneficial in that it allows an investor to purchase larger properties without having to come up with all of the money upfront. It also allows them to benefit from the expertise and knowledge of their equity partners who may have more experience investing in real estate than they do.
Types of Equity Financing
First, it’s important to understand the different types of equity financing. The most common type is venture capital funding. This involves a third party investing in exchange for ownership shares and a potential return on their investment – generally over several years. Angel investors are another source of equity financing, with the investor providing funds in exchange for either a stake in the company or asset, or a percentage of profits.
The Benefits of Equity Financing for Investment Properties
When it comes to large property investments, equity financing can be an attractive option for investors who do not have the means to make all the necessary payments upfront. This type of financing allows them to purchase larger properties without having to invest all of their own resources into the purchase. In addition, equity financing can also be beneficial from a tax standpoint. Many investors are able to deduct the costs associated with their equity partners over time, meaning they will ultimately save money on taxes in the long run.
Understand the Risks
Finally, it’s important to remember that while equity financing can be a great way to purchase larger properties without having to invest all of your own resources upfront, there are still risks involved that must be considered. Equity financing can involve large amounts of money, so it’s important to understand the terms and conditions that come with these investments and to work only with reputable equity partners. Contact Artis Commercial Capital today to learn about our equity financing for large and high-net worth property investments.
