Financing secured by the equity accrued in commercial real estate, such as office buildings, retail spaces, or industrial properties, allows businesses to leverage existing assets for capital. For instance, a business owner might leverage the value of their warehouse to obtain funds for expansion.
This financing strategy offers access to substantial capital, often at competitive interest rates compared to unsecured loans. Historically, it has been a vital tool for businesses seeking growth opportunities, enabling property improvements, debt consolidation, or new acquisitions without relinquishing ownership. Its flexibility and potential for long-term financial gain contribute significantly to its appeal among established enterprises.