Raw land loan is financing for undeveloped land.
Raw land loan financing enables your business to take advantage of excellent deals on land where you can build commercial property. With the financing in place you can purchase property in good locations for the right price, and save money down the road.
You can obtain a raw land loan through a bank or through the Small Business Administration (SBA). The SBA guarantees up to $750,000 of a loan which enables small business to get approved without having large amounts of collateral. Getting approved for financing can be difficult if you have not established any business credit scores. If you were to get a mortgage for a house or a car loan you would need to have established personal credit. The same concept works for your business, but many business owners tend to overlook this vital aspect to getting financing.
You can start establishing business credit by setting up a 1-3-5. This means you get 1 small bank loan, 3 business credit cards, and 5 vendor lines of credit. When going after these loans make sure they report your payment history to the Small Business Financial Exchange (SBFE). This is how you will build your credit. Our Business Finance Coach can assist you in establishing business credit and even show you which lenders to setup accounts with because not all lenders will report your information to the SBFE. It is important that you separate all personal credit from business credit. You also shouldn’t have to use a social security number to secure a business credit card.
To find lenders for a raw land loan conduct a search in our free business capital search engine.