Joint Venture Financing

Joint venture (JV) project financing is an excellent funding solution for many businesses. This allows companies who are willing to give up some equity to grow without adding debt to their books. Companies with a solid business model and product can use this approach to scale up quite rapidly as they are not burdened with debt or loan repayments, enabling them to focus on creating additional revenue and adding more value than they could with traditional financing. Other businesses seek out more strategic joint venture funding to grow their business. In these partnerships the financing may be of less importance than the relationship itself with the joint venture partner. The equity capital is exchanged for benefits the partner can provide, such as being able to develop relationships with commercial vendors or retailers which otherwise would not be possible, or the use of commercial equipment which allows for an efficient means to scale operational production.

Whether you are seeking to grow your small business or acquire an investment property, it is important to consider that joint venture capital lenders have even more leverage than a traditional debt capital lender. They are more selective as the stakes are different. Rather than evaluating the ability to make a low fixed monthly payment over a period of time, they must evaluate the success of the company over time. The more success your company experiences, the greater the return for the jv capital investor. While that may seem intimidating to some, it is actually a very good thing for the client. You get a much more hands-on lender who not only is concerned about your success, but is focused on the magnitude of your success. Nearly every industry and project type can be funded by JV capital loans. Common venture projects are hotels, shopping centers, office buildings and condos, where both parties share in the risks and rewards of the joint venture project.

When approaching joint venture capital funding for your project, always remember investors are looking for profit potential and are adept at reading between the lines. Simply stating that your project will make a lot of money isn’t good enough. Your key to success in securing investment is presenting a professional business plan that clearly outlines how you will achieve your goal. Another important factor is the management team; an investor needs to feel he is working with a team that is experienced and will get the job done, think of it as a job interview for your company.

Our team is happy to listen to your financing needs and help determine if joint venture financing would be the best way to provide working capital for your project. We will use our experience to create solutions that meet your funding requirements and create long-term success.

Commercial Real Estate Loans

Our commercial real estate lending team understands that each person looking to develop, purchase or even refinance real estate has unique needs and requirements in a commercial loan offering. Commercial real estate loans can be used for three primary purposes: development, purchase, and refinance. Real estate development loans and purchase loans can be grouped together for their broader purpose: Investment or Owner-occupied. An easy way to determine which category you call into is to consider the purchase. In an investment loan the property generates the revenue directly, while with an owner-occupied loan, the purchase is used to facilitate revenue creation, such as buying an office.

Investment – Whether developing or purchasing an existing property, these loans are for income-generating properties and generally made to business entities, although occasionally are made to an individual investor. While these commercial real estate investment loans do favor strong financials and higher creditworthiness, the rates on investment loans are typically lower than those which are owner-occupied real estate loans. Additionally, there are even more favorable commercial loan rates when looking to purchase an existing investment property, as there is less risk involved than with a new construction. We pride ourselves on pairing your perfect real estate investment opportunity with the perfect commercial loan product.

Owner-occupied – When it is time to expand, our commercial real estate purchase loans are a commonly used tool to achieve your property funding goals. If this is property that will be used for your business such as a new office or an additional warehouse, the real estate loan would be considered as owner-occupied. Our team can explain how commercial real estate loans can make it possible for your company to stop renting today.

Refinance – Commercial loan rates change over time and there are many real estate loan products in the world of commercial lending, some more favorable than others. There are many reasons why commercial loan refinancing is right for you, such as high interest rate, a high loan payment leading to cash flow issues, and simply paying off something more temporary, such as a commercial construction loan. We have a wide range of commercial real estate loan products that can help to reduce the strain on your business and keep you on the path to success.