Tips For Financing Your Commercial Metal Building Project

The construction of warehouses and retail spaces has been growing due to evolving consumer habits, a rise in work-from-home, and costly constructions for traditional malls and offices. There has also been a significant rise in e-commerce platforms, which need a large inventory near cities for quick delivery services. This has led to the rise of commercial metal building installation to meet the growing demand for storage and distribution centers.

However, not every business can pay the full upfront cost of large industrial buildings. That’s why it is crucial to discuss the financing options available for them. Let’s check out some financing options for business and agribusiness owners, understand what they are, and, as a business, what your options are.

Understanding Financing Needs For Installing Steel Industrial Buildings

Project Scope & Budget

An accurate estimate of cost is crucial for the successful execution of a metal building project. You must include details in planning such as:

• Material cost
• Labor cost
• Site preps
• Foundation cost
• Permit fees
• Utility fees

Opt for custom commercial metal buildings and add features that enhance productivity, functionality, and overall aesthetics. don’t forget to add soft costs like

• architectural & engineering fee
• inspection fee
• legal & accounting fee
• interests or loans
• marketing/ ad fee
• interior finishing & security features

Plan for any future expansion before installation. A metal building dealer will suggest adding the removal of end walls in such cases. At the time of expansion, you can remove them, add more side panels to increase length, and place end walls back.

Factors Influencing Commercial Steel Buildings’ Project Cost

• Size of the steel structure
• Design complexity
• Customization
• Location & permits
• Certification against wind & snow

A metal building has versatile uses across commercial sectors, including retail space, warehouses, cold storage for perishable items, etc. You can customize it as per need.

Creditworthiness

A strong credit history works in your favor when seeking financing for a commercial steel structure. You will have a high chance of getting a loan at lower interest rates.

Down Payment Needs

Down payment will vary based on the type of financing you choose. You can explore grants and incentives to reduce overall costs.

Exploring Financing Options For Commercial Metal Buildings

Traditional Bank Loans

Pros: Competitive interest rates, flexible terms, tax deductions.
Cons: Thorough application process, strict credit needs, lengthy approval timeline.

SBA Loans

The Small Business Administration loans include:

• 7(a) loan: for general business such as buying real estate
• 504 loan: for fixed assets like real estate, equipment, etc.

Pros: Government-backed [partially], flexible lending norm, less down payment needs, ideal for businesses who can’t qualify for traditional bank loans.
Cons: time-consuming, complex documentation, need of collateral, restrictive use of funds, need to submit regular financing reports, loan limit of about $5 million, non-compliance can result in penalties.

Seller Financing

Here, your metal building dealer directly provides you with financing options to buy an industrial steel building.

Pros: More flexible terms, tailored financing solutions, negotiated directly with the dealer.
Cons: Limited availability, may have higher interest rates than traditional financing.

We provide metal building financing for our clients looking for flexible payment methods. Its benefits include:

• Flexible payment terms [24-72 months]
• Financing available for up to $50k building
• Available for 3, 6, 12 months’ terms
• Lower interest rates
• Complete transparency
• Pay off anytime

You can talk with our metal building experts at 877-801-3263 to learn more about it. We also offer clear span metal buildings to enhance your large scale projects, which gives maximum usable interior floor and efficiency.

Private Lenders

Pros: Faster funding compared to traditional banks, flexible terms.
Cons: Higher interest rates, may have strict requirements

Rent To Own

It’s similar to renting, but with a twist: part of your rent goes towards purchasing a metal structure. Once you decide to buy, you can complete the payment and own it. Our rent to own metal building features include the following:

• No credit checks required
• Same day approval
• Affordable monthly payments
• Flexible payment options
• Pay off anytime
• Ownership in 36 months or less

You can call us at 877-801-3263 for more details.

How To Prepare Successful Financing Application For Industrial Buildings

• With a strong credit score, you can get favorable loan terms.
• A well-crafted business plan gives an outline of your project goals, strategies, and positive financial returns. It gives confidence to the lender that you have a clear roadmap to make your business grow.
• It is best practice to have an accurate financing record for your business’s financial health. It helps you save money & get suitable funding.
• Don’t rush to sign off a deal. You can shop around for the best rates and choose one that saves you money and is best for your business growth.
• Read the loan agreement thoroughly, especially the fine print. You can hire a professional for help.
• Have a clear budget to manage your project & future needs.
• Always have long-term financial planning for the loan amount.
• When in doubt, go for expert advice & consultation for correct guidance. They will help you through the loan smoothly.

Maximizing Tax Benefits & Incentives For Commercial Steel Buildings

Here are some of the tax incentives you can get for installing a new commercial barn on your farmland:

• Section 179 Deduction: You can subtract the full cost of a building from your taxes in a year to a specific amount.
• Renewable Energy Credits/ Property Assesses Clean Energy [PACE]: You can get a tax reduction for many energy-saving chances in your commercial metal barns & buildings for agricultural use.
• Bonus Depreciation: You can deduce additional taxes for the cost of a new building due to inflation.
• State & Local Incentives for Energy Efficient Building: You can get extra tax reductions for installing a metal building with green certification.

Get Commercial Metal Building With Financing Option From Us

Contact Viking Steel Structures today to learn more about financing options for high-quality and durable metal garages, barns, and buildings. We offer engineer-certified & customized metal structures tailored to your needs at a reasonable price. For a free quote or to discuss financing options, call our team at 877-801-3263.