7 Ways to Use a Commercial Real Estate Working Capital Loan

There are times when finances are tight for a business, but you still need working capital to get it all done. This is where a commercial real estate loan can come in handy. You can use these loans in a variety of ways to stay in business or expand your company, including using them as operating capital, payroll or advertising funds.

Operating Capitaland Payroll

Probably the easiest way to use your commercial property loan to the advantage of your company is for operating capital. This can include everything from supplies funding to the utility bill and can help you stretch through the slow season. It can also be used to make sure that your employees are paid in-full and in a timely manner. This can help keep you from further financial stress as well as help you retain the best talent for when work picks back up again.

Financing Equipment Repairs and Emergency Needs

Commercial real estate loans can be used to help finance the repairs of existing equipment or to purchase replacements. Equipment is expensive to buy, maintain and upgrade so finding the right financing option can help you get it done without going broke. These loans are also useful in helping cover emergencies which can pop up during normal business operations such as broken property or low inventory as well as those much-needed repairs.

Build-outs and Tenant Improvements

When you undertake a build-out with your loan, you are building up your property to suit a new tenant. This is what is usually meant by the phrase ͞will build to suit͟ and involves constructing a new building. Tenant improvements, on the other hand, entail making an existing commercial rental space better fit new a tenant. This includes adding a kitchen to a space for a restaurant or dividing a space into individual offices.


A good use of your funds is in advertising costs for your company. This can help you better build your audience and increase future sales. Some of the advertising costs you may have include television or radio ads, promotional items and even new branding merchandise.

Commercial real estate loans can help you come up with the funding that you need for a number of different projects. You can use this loan as operating capital for your business or to build a new space for your tenants. You can usually find these loans through your bank or through a third-party lender alongside other financing options.


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