Factory loan refers to a type of financial assistance used to acquire a factory or an industrial property. This factory loan is not only for factory acquisition. However, we can also use it to expand an existing factory or purchase machinery and equipment. You can also choose to refinance your fully paid factory for working capital loan.
Depending on the respective bank’s criteria, some lenders granted a factory loan judging by the location, type of commercial property and the number of floors in the building. The banks can be pretty strict with the types of commercial property they finance, unlike home loans. Banks tend to disapprove loans meant to finance factories situated within shopping complexes.
If the factory is on an upper floor of a mixed development, the loan most probably will not be approved. 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.
Land financing involves purchasing a piece of raw land. The loan for raw land commonly refers to a land that has no plans for improvement. Most bank lenders consider raw land as the least favorable collateral and are particularly difficult to obtain a loan. Moreover, purchasing a raw land requires a higher down payment up to 50% and a higher interest rate.
If there are any developmental plans for the land, it is much easier for the bank to approve. However, usually, most people who buy land, do not have an immediate use for the land. Hence at the point of purchase, they will not have any developmental plans.
To acquire a land, you have to do a lot of homework since purchasing a land is not as simple as borrowing money to buy a house. Unlike houses or condos which we can get valuation report, a piece of land is difficult to determine its worth. Therefore, it is vital for you to gather valuable information such as land survey, zoning laws, and land use restrictions.
Whether you need factory loan or land financing, if the bank is not able to approve your loan, do consider us. We are known for easy application process, fast approval and quick disbursement of the loan that we approve.
We specially focus on area within KL, Selangor and Negeri Sembilan. Within Selangor, we cover area such as Petaling Jaya, Shah Alam, Putrajaya, Klang, Setia Alam, Ampang, Gombak, Subang and Puchong. Whilst in Negeri Sembilan, we specialises in Port Dickson, Seremban, and around Negeri Sembilan. In KL, we have agents in Cheras, Kepong, KLCC, Setiawangsa, Sentul and Pandan.