Understanding Light Industrial Loans & Their Uses
NYFTY Lending provides business owners with access to special financing programs designed to support light industrial spaces. Keep reading to get to know how light industrial loans work and how to take the next step.
What Are Light Industrial Loans?
Higher loan amounts
Light industrial loans offer higher loan amounts than other types of commercial financing to support the specific needs of small-scale facilities.
Fixed and adjustable-rate options
Choose between fixed and adjustable-rate terms depending on which type of repayment structure best suits your business goals.
Typically secured by collateral
Typically, light industrial loans are secured by the property or equipment being financed. As a result, borrowers may not need to provide detailed personal financial records.
What Can Light Industrial Loans Be Used For?
Light manufacturing and assembly plants
These loans are commonly used to finance modest factories, food production facilities, printing and packaging plants, and other buildings where small-scale operations take place.
Consumer goods facilities
Light industrial loans are also a good choice for establishing or expanding production in the consumer goods industry. This includes things like household products, small appliances, electronics, and other merchandise for sale.
Flex spaces
Another ideal use for this program is to finance flex spaces. For example, a tech startup or a small clothing boutique might need access to an office and a production facility in the same building.
Pros
- Flexible use
- Competitive interest rates
- Long repayment terms may be available
- Ideal for small operations
Cons
- Fees may be applicable
- May require a larger down payment
- Loan approval depends on property value
Talk to our mortgage experts today about finding the right loan for you.
Alternatives to a Light Industrial Loan
Warehouse Purchase Loans
- Designed for facilities used for storage and distribution
- Loan amount based on the value of the property
- Attractive interest rates for qualified buyers
Commercial Mortgage-Backed Securities (CMBS)
- Pools multiple commercial real estate loans into securities
- May provide access to larger amounts of capital
- Reduces individual investor risk
- Offers short-term financing for light industrial construction projects
- Funds are disbursed in stages when certain milestones are met
- Converted to permanent financing once construction is complete
How How Do I Know If a Light Industrial Loan Is Right for Me?
You’re scaling up your operations
If your business is growing and you need additional space for manufacturing, warehousing, or assembly, a light industrial loan can be a reliable source of funds to support your expansion.
You need a moderate amount of financing
Light industrial loans typically provide access to larger loan amounts than conventional financing, but may offer less than a jumbo loan. If the amount you want to borrow is middle-of-the-road, this program could be a good choice.
You have a strong financial profile
If your business has a solid credit history, stable revenue, and a good track record, you’ll have a higher chance of securing favorable terms.
When Is the Best Time to Take Outa Light Industrial Loan?
The best time to take out a light industrial loan is when your business is ready for growth. This could be when you’re looking to expand and need more space, or when you’re launching a new product that requires additional equipment or infrastructure. If you’ve identified areas of improvement or ways to become more efficient, you can use this program to invest in streamlining operations to create a better workflow.
This is especially true if you’ve successfully weathered the early stages of business and are now in a place where you can comfortably manage new debt. Additionally, if your business is reaching a point where it needs to increase production capacity to meet rising customer demand, a light industrial loan can help finance these improvements.
Get In Touch With A Loan Officer Today
FAQ
Can I get a light industrial loan if my business only operates seasonally?
Yes, you can get a light industrial loan even if your business operates seasonally. To qualify, you will need to be able to demonstrate that your off-season revenue can still cover your loan payments. You may have a higher chance of approval if your business has high profitability during peak periods.
Can I use a light industrial loan to buy out a partner and take full ownership of an industrial business?
If you co-own an industrial business with someone else, you can use this program to buy out your partner and take full ownership of the company. However, your business will likely need to be financially stable and you will need to show that you can repay the loan on your own.
How is the amount I can borrow calculated?
Ready to Go?
Apply Now
Have Questions?
Get Them Answered
Borrowing Is Better with NYFTY Lending
Find Your Loan Officer Today
Connect with a loan expert near you to get started. Â
