Welcome to our blog! Today we are going to dive into Colorado commercial loans and discuss the main reasons why you would need to take out a Colorado commercial loan with Abbey Mortgage. Before we get into that, though, let’s first learn a little more about Colorado commercial loans by defining what Colorado commercial loans are and who they are for.

What is a Colorado commercial loan?

A Colorado commercial loan is a debt-based agreement between a lender — such as Abbey Mortgage — and a business.

Who needs to take out a Colorado commercial loan?

A Colorado commercial loan is designed for business owners and real estate investors to help them fund their deal.

Why do business owners and real estate investors need to take out a Colorado commercial loan?

To Purchase Colorado Commercial Real Estate

As a business owner or real estate investor, you may need to take out a Colorado commercial loan in order to purchase commercial real estate. Commercial real estate is a property that is used for commerce purposes — the buying and selling of goods. Business owners purchase commercial real estate in order to own the real estate from which their business runs. Commercial real estate investors, on the other hand, purchase commercial real estate to rent out to business owners who do not have the means to or do not wish to own their own property.

To Expand

Business owners may look to take out a Colorado commercial loan if they are interested in expanding their business. There are many reasons why a business may look to expand. From simply needing more space and manpower to wanting to reduce risk or increase profits, expanding a business can be a great business opportunity — but first a business needs the funds.

To Purchase Machinery Or Equipment

Many businesses have equipment that is essential to do the job. Unfortunately, machinery and equipment break, wear out, and become outdated over time — and the business owner must replace it. Machinery and equipment are not often cheap and can be a huge financial burden to business owners. In this case, business owners can take out a Colorado commercial loan to help cover the expenses.

To Purchase Inventory

Merchandise-based companies must first invest in the products they plan on selling before they can make a return. However, keeping up with the demand for your products can be expensive and difficult to manage. To help keep up with inventory expenses, businesses can take out a Colorado commercial loan.

To Increase Cash Flow

Running a business is expensive and cash flow can be challenging, especially for small businesses. There are so many factors that can affect cash flow — customers not paying their bill, excessive inventory, unexpected costs, etc. On top of factors you can’t control, keeping your lights on and paying your employees can be a struggle on its own. When cash flow is poor, business owners can take out a Colorado commercial loan to help keep up with costs and keep their business running until they can make up for their losses and increase their profit.

Are you a business owner looking to take out a Colorado commercial loan? Contact Abbey Mortgage to discuss your loan options. We look forward to speaking with you.