Dennis owns a small industrial building where he has run his business for years. The time had come to invest in new machinery so his business could modernize and grow to the next level. He wanted a loan secured by his business real estate but he dreaded the traditional application process. We introduced Dennis to a brand new business equity program with 98% less paperwork. In fact, we took his complete application over the phone in just 15 minutes. Now he has plenty of business capital that's ready when he is.

If you own a commercial property valued at less than $2 million and have ever sought financing for that property, you probably know how difficult it can be. A major bank on the west coast recently conducted a survey to find the most under-served markets. They found a huge but unsatisfied demand for commercial loan requests of less than $1 million. Why?

Because the small local banks that traditionally lend less than $1 million on commercial properties make it too difficult for business owners to get the money they need. They require tons of complicated forms to be filled out. They require very expensive appraisals. They require reams of income documentation including personal and corporate tax returns (and many who provide this paperwork are denied because of the bank's stringent formulas). They impose high closing costs. They impose onerous pre-payment penalties. And after all that, the loan terms are not so good anyway.

Small business owners have enough forms to fill out and complications to deal with as it is. So despite sitting on properties with significant equity, business owners have frequently turned to other (but still undesirable) ways of raising working capital instead of meeting the difficult demands of their local bank. They sometimes borrow against their own home, but it's usually not a good idea to mix business and personal liabilities, and also, this can leave you hamstrung when you need to make a change in your home financing due to a move or refinancing. They sometimes opt for loans secured by business equipment or unsecured loans with interest rates and terms that are unnecessarily high and wasteful.

Another major way that business property owners have not been served by their local banks is that traditional commercial loans require that you take all the money at once in one lump sum. But in the study conducted by the major bank, they found that smaller commercial property owners really wanted the equivalent of a home equity line of credit, but tied to their business property instead so they could access the money as they needed it without paying interest on money they weren't ready to use.

All of this is history now. It's a new day for California business property owners who want a better approach to their financing needs. In light of their study, the major bank invented a whole new type of loan for business property owners. And businesses across the State of California are clamoring for this new product because:

• It slashes the application down to one page
• It eliminates the need for income documentation
• It eliminates the need to document your assets
• It eliminates the need for an expensive appraisal
• It eliminates the need to mortgage your home as well as your business (common under SBA financing)

The new business equity loan can be used in first or second position on the following types of real estate:

• Office
• Light Industrial
• Warehouse
• Retail
• Residential (1–4 units)
• Mixed-use
• Office Condominium
• Special Purpose
• Multi-family (5+) residential
• Investment Properties
• Assisted Living Facilities

We always welcome your call. When you have a simple question, when you want a personal consultation, or when you're ready to apply for new financing, please contact our office for friendly, impartial advice and information.


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