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Showing posts from October, 2022

How to Finance Commercial Real Estate Deals Using Joint Venture Equity

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  What if you come across a commercial real estate investment opportunity but have insufficient capital to swing the deal? That’s where JV (joint venture) equity comes to the rescue. But what is joint venture equity? And how can you use it to your advantage? Read this guide to learn more, and check out GCP Fund  for joint venture financing in New York . Joint Venture Equity Joint venture equity  or common equity in real estate is the capital invested into a commercial real estate opportunity to cover a risky portion of the capital. Structured joint venture financing  can potentially maximize cash flows for you. It’s similar to a business partnership, only limited to a specific real estate project. For instance, if you purchase a piece of land but don’t have the capital for development, you can contract with an investor or sponsor to share profits, losses and costs. How to Finance Joint Venture Equity If you want to successfully strike a JV deal, you need to follow th...

Asset-Based Lending Vs. Cash Flow-Based Lending

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  When it comes to scaling and sustaining operations, businesses require viable financing options for borrowed capital. For small and medium-sized businesses, short-term financing is essential so they can deal handle finances and prepare for long-term growth. Depending on a business’s needs, there are two different lending options available, i.e. asset-based and cash flow-based lending. To learn more about them, continue reading this article. For asset-based lending in New York , visit GCP Fund. Describing the Two Lending Styles…. In simple words, asset-based lending involves loans based on a business’s balance sheet assets. These assets can be inventory, accounts receivable, equipment, and machinery. On the other hand, businesses can also borrow capital using cash flow-based loans, which are provided against future estimated  cash flows . Here are some differences between these two lending options. Focus A huge difference between asset-based and cash flow-based lending is wha...