Options to Fund Your Renovation Project
Business renovations are expensive projects. While paying for them on your own is ideal, it’s often impossible to pay for everything on your own. At the same time, getting a loan might not be the best idea.
Before you go looking for lenders, consider that you can look in other places. The best place to start is with those close to you. In some cases, family, friends, and business partners are a better place to start looking. If they can’t help you, there are also community development initiatives around Canada that help small businesses.
These options are often unavailable, but they are always worth looking for. This is why renovation, remodelling, and rehab projects are often financed through loans. When most other sources of funding are hard to find, getting a loan is the easiest option.
How do Business Renovation Loans Work?
Business renovation financing typically comes from business loans. Because business renovations are commercial and serve the purpose of improving your business’s performance, they easily qualify as business loans.
To find a commercial renovation loan, your first step will be to find and compare available lenders. If your credit score and business profits are higher, you will have more options available and get better rates from lenders.
You must send a loan application to the lender you would like to get a loan from. They will want to have a look at your recent business financials, and they will pull your credit score. Using this information, they will decide whether to offer you a loan. If they do send an offer, their rates will depend on these same variables.
Once you are sent an offer, it’s up to you to decide whether to accept it. If you do, the lender will transfer you the money and the terms of your loan will be applied.
Frequently Asked Questions about Renovation Loans
How long does it take to get a business renovation loan?
Business lenders can work incredibly quickly, though many are very slow. The approval times for a commercial renovation loan will depend on which lender you go to. Banks will usually take between two weeks and several months to approve a loan. An alternative lender will usually take a few days. Some online lenders can have the money on their way to your business bank account in just one day.
Can I get a business renovation loan with bad credit?
Yes, you can. Bad credit business loans are approved with far less stringent requirements than other business loans. Bad credit business loans come with worse rates than the loans available to larger, more stable businesses.
How big of a business renovation loan can I get?
The limits on the size of business renovation loans you can get will depend on:
- Your choice of lender
- Your credit score
- Your recent business financial history
- The type of loan you apply for
Some business lenders can give you hundreds of thousands of dollars in just a few days if they see you as an ideal borrower.
What Type of Projects is a Renovation Loan Good For?
Commercial renovation loans are good for any kind of renovation that typically costs a lot of money. Some examples include:
- Building expansions
- Office repairs
- New interior walls
- Decorations
- New furniture
- HVAC repairs or upgrades
- Insulation
- Paint jobs
- Roofing
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