Commercial construction loans: Building your business from the ground up
Is your manufacturing space or staff expanding beyond your current building’s capacity? Are you renting office space and looking to build for a more productive environment that better suits your future goals? Or are you looking to customize a location to meet your business's mission for resource conservation and sustainability? No matter your situation, your business is growing, and with it, your facility needs. While expansions or renovations can be costly, commercial construction loans are a financing tool available to help your business alleviate the upfront costs.
What are commercial construction loans?
A commercial construction loan finances what is needed to construct or renovate a commercial space including purchasing and developing land, building materials, and contracted labor. While commercial real estate loans aid in purchasing an existing property, construction loans specifically support the production or renovation from the ground up.
How do commercial construction loans work?
Working with a dedicated community lending partner like us, commercial construction loans have a draw schedule to help keep your project on time and budget. With a draw schedule, portions of the loan are available for use as the project progresses. Once your expansion or structure is complete, opening a commercial mortgage allows you to use the property as collateral and pay back your business’s commercial construction loan.
How can you use a commercial construction loan?
There are several ways you can use a commercial construction loan to create the right space for your growing business to thrive. Below are the three most common uses:
To expand your business’s facilitiesSometimes you outgrow your current building or property and require additional space for production or employees to operate. A commercial construction loan will give you the capital you need for the increased space while improving your cash flow to support your operations.
To purchase new landFinding the right commercial property in the right location offers you the ability to create a customized building that meets your business's short-term and long-term objectives. Purchasing property to build your new facility is a valuable economic opportunity that enables proximity to suppliers, business partners, and resources while furthering community prosperity.
To renovate your spaceRemodeling your existing building can be both cost-efficient and sustainable. There are many reasons to consider this route, especially if your current building fits your capacity needs. The need for large-scale commercial retrofitting can span from simply renewing an outdated office space or the installing system upgrades to code regulation updates or redeveloping after a natural disaster.
Your commercial construction loan begins here
Expansions, purchases, and renovations allow your thriving business to grow. At Westfield Bank, we’re your partner throughout times of growth and change, providing working capital and preserving your cash flow to keep your business moving along its journey.