Factory loan refers to a type of financing used to acquire a factory or an industrial property. The loan cash is not only for the acquisition of the property but we can also use it to expand an existing factory or to even purchase machinery and equipment for production to run daily business model.
Depending on the respective bank’s criteria, some banks may offer a factory loan judging by the location, type of commercial property and the number of floors in the building. Unlike home loans, the banks are very strict with the types of commercial property they finance.
Banks tend to disapprove loans meant to finance factories situated within shopping complexes. If the factory is on the upper floor of a mixed development, the loan is likely to get rejected too. If your factory falls within any of these categories, you have a reason to consider private lenders to fund especially if your financial status isn’t strong as well.