Bourjois Abboud's business was booming. While this growth was exciting, he found it difficult for his facility's size to keep pace with the increased demands of his clientele. Looking at industry projections, Mr. Abboud realized he simply needed more space.
By 2012 Advanced Pharma occupied over half of a 35,000 sq. ft. multitenant building and wanted to acquire an extra 6,000 sq. ft. When Mr. Abboud approached the landlord, he offered to sell the building to Advanced Pharma. Property ownership appealed to Mr. Abboud, but he had concerns because the seller wanted a quick turnaround. He turned to Community Business Finance for help in securing an SBA 504 loan.
Community Business Finance quickly worked hand-in-hand with a commercial lender to provide the loan. They provided a competitive interest rate, offered affordable terms, and lent expert advice to navigate through the regulations and paperwork needed to close the deal. With Community Business Finance's support and experience, the owner's conditions were met on time.
As a result of using a 504 loan, Advanced Pharma's monthly payments are lower than the previous lease rate. They used the extra savings to pay for property taxes, maintenance, and utilities. Owning the building also adds a large asset to their portfolio, and they can utilize their lower monthly payments to divert cash to their expansion process.
Since purchasing the building, Advanced Pharma's revenue has increased by 40% and they have increased their staff size by 20%. The larger space and increased cash availability allow Advanced Pharma to meet the challenges of growth, now and in the future.
Read more about how Community Business Finance helped Advanced Pharma with their business expansion using a 504 loan. Contact Community Business Finance to find out how an SBA 504 loan can help you purchase your business property and divert working capital to other needs.