Retail has always been and is expected to remain a lucrative industry. This is because the US economy is fueled by consumerism, as spending on consumer products continues to rise each year.
However, like any other industry, retail business owners can find themselves short of financing options when they are looking to expand their business. This is because prices of commercial real estate are quite high.
GCP Fund has always played an integral role in driving the retail industry by providing a number of financing options.
Here are some financing options GCP Fund provides to retailers:
Investors entering the retail business and looking for properties to acquire for their future business plans, can acquire a permanent form of financing. However, permanent financing can also be obtained for refinancing, acquisition, and development of existing retail properties.
We provide several types of permanent financing, based on individual business needs. Permanent form of financing provided by us is of a period of around 5 years, as this is an adequate duration considering the nature of retail business.
For retail properties owners who have just got started and aren’t eligible for any sort of permanent financing can acquire a bridge loan. Bridge loans can be acquired for a period of 6 to 36 months, until the business is able to secure a permanent financing.
Bridge loans are also used by retail property owners for the rehabilitation of the property and the repositioning of the business.
Mezzanine financing is a great option for retail property owners to expand their retail operations. If the property already has a debt secured to it, then no further funding can be acquired which is where mezzanine debt comes in.
Mezzanine debt is a hybrid form of financing, where the lender has the right to convert the debt into equity in case of default.
Mezzanine is a great way to secure funding without having to sell the ownership of the business. However, the retail business should have a healthy cash flow, in order to be eligible for mezzanine debt.
Hard Money Loans
Retail businesses with seasonal variations tend to be strapped for cash when the business is slow. It becomes difficult to pay utility bills, staff salaries and purchase inventory.
A hard money loan in a time like this can help retail business keep up with their obligations and avoid foreclosure or downsizing. Hard money loans are approved quickly and are provided on relatively reasonable terms.
If you own a shopping mall, strip mall, storefront or just a grocery store, contact us today at 1-800-514-7350 or visit our website to learn about the financing options that may be available to you.