Line of credit.
I own an office building and owe about 200k on it. It should appraise at 800k- 1mil. I would like to get a line of credit for 100-150k to fund the launch of the latest version of our product. What is the best way to accomplish this at the lowest cost?
Thank you for your question. Based on the situation you’ve outlined above, there are a couple of different directions that you could go. The first option would be to get a business line of credit to finance the launch of your new product. A business line of credit is a great tool for that kind of financing. A lot of our readers have had particular success working with BlueVine and OnDeck.
While business lines of credit typically come with higher interest rates that commercial property loans, they also offer faster funding and more flexibility if you decide to sell your building or refinance for other purposes.
The other way you could go to finance your new product launch would be to get an investment property line of credit. Given the equity you currently have in your building, you should be able to accomplish this without much issue. The time required to fund your loan may be longer than a business line of credit, but the interest rate will also be considerably lower. If you’d like to learn more, be sure to check out our ultimate guide to Investment Property Lines of Credit.
Hope this helps. Best of luck with your new product launch!