As 2025 approaches, economic uncertainty is vaguely visible. Whether it is due to new policies or market changes, businesses must remain agile to lead to unexpected changes. Traditional financing methods can also be slow and rigid. To maintain flexibility, consider faster and more flexible alternatives such as private loans, asset-based loans, and bridge financing under the guidance of a qualified broker.
In this article, we will provide an overview of three loan types and how to use them to make your business more manipulative. With these tools, you will be ready to respond to rapid economic changes and protect your investments and companies.
Private loans
Private loans are sourced through high net worth individuals and private organizations such as non-traditional lenders. With fewer underwriting requirements and minimal restrictions on how you use funds, private loans allow businesses to quickly access capital. Private lenders don’t always advertise directly to consumers, so your broker will be the key to unlocking these opportunities.
Land acquisition
Securing land in a critical location is crucial as more companies are considering avoiding supply chain disruptions and potential tariffs. As competition among major websites intensifies, waiting for traditional bank financing can mean loss. Instead of waiting weeks or months to get a bank loan, private loans can be approved in just a few hours. You will then be prepared with a quick, cash-backed quote to ensure your business needs.
Asset-based loans
Among other loan types, private lenders offer asset-based or mortgage-based loans. Asset-based loans allow you to leverage your business’s valuable assets, such as equipment, real estate, inventory or vehicles, to get funds. These loans rely on a smaller credit score, allowing you to get higher loan amounts and lower interest rates than unsecured loans. Consult your broker to determine if an asset-based loan is suitable for your business before applying.
Machinery and raw materials
The development of AI technology and the potential increase in import costs next year may make machinery more expensive and difficult to obtain. If the price of imported raw materials is priced, the manufacturer may charge more for the machinery it produces. Whether your business requires direct access to raw materials or updated machinery with new features, you can get it using an asset-based loan. Use the value of the company’s assets to obtain the required capital without liquidation.
Bridge Loan
Bridge loans provide short-term capital to bridge the gap between Point A (e.g., completed in real estate transactions) and Point B (commercial mortgage). Whether you are securing real estate or acquiring new assets, Bridge loans have the flexibility to move without missing opportunities. Often used with other financing options, bridges can be replaced with long-term loans or improved cash flows without the need for early repayment fines. Your broker can help you evaluate if a bridge loan meets your financial needs.
Industrial facilities
Government policies on emissions, zoning and energy supply may have a significant impact on industrial facilities. Pressure from climate issues could force regulations to require expensive upgrades and new equipment to remain compliant. To avoid fines and slowing production times, businesses need to quickly acquire capital. Bridge loans provide quick funding to meet these needs while you get long-term financing options.
All of these loan types come in short term, from just a few months to years. While a shorter term means you won’t pay for a long time, it also means you need to budget for repayments carefully. Share your short-term prospects with your broker so they can help you develop a comprehensive repayment plan.
There is uncertainty ahead. Changes proposed by the incoming presidential administration will affect the economy in many ways. However, not all of these effects are predictable. Businesses will need to stay on their toes and be aware of the current events to decide how best to respond. Flexible enough to pivot when needed will ensure your company can take advantage of the New Year’s opportunities. Finding capital can be difficult in a challenging economy, but with our team you will be ready to succeed.
