Equipment Financing in Dewey Beach, DE
Asset-based loans using real estate collateral to fund business equipment purchases.
Apply NowHow This Financing Works
Financing Challenges We Solve
Our Approach
Financing for Equipment Financing
Contact us today to discuss your equipment financing project in Dewey Beach and learn more about our specialized financing solutions.
Frequently Asked Questions
How do construction loan draws work?
Construction draws disburse loan funds incrementally as construction milestones are completed rather than providing all funds upfront. Typical draw schedules include: initial disbursement for land acquisition or closing, foundation completion, framing and rough-in completion, drywall and interior systems, and final completion. Before each draw is released, an inspector verifies work completion against approved plans. The borrower submits draw requests with contractor invoices and lien releases, and funds are disbursed within days of inspection approval.
What percentage of construction costs will hard money finance?
Hard money construction loans typically finance 65-75% of total project costs (land plus construction) or 70-80% of completed project value, whichever is lower. Experienced builders with strong track records may qualify for higher leverage. Borrowers should expect to contribute 20-35% of project costs as equity, though cross-collateralization using other properties can reduce cash requirements.
What happens if construction costs more than expected?
Cost overruns are addressed through several mechanisms. First, quality lenders require contingency reserves (typically 10-15% of construction costs) in the initial budget. If overruns exceed contingencies, borrowers may need to contribute additional cash or the lender may provide additional financing if the project remains viable and completed value supports increased loan amounts. Maintaining adequate equity cushions and obtaining thorough pre-construction due diligence helps minimize overrun surprises.
Can owner-builders get construction loans?
Owner-builder construction loans are available but require additional scrutiny. Lenders evaluate the owner's construction experience, availability to manage the project, and ability to obtain necessary insurance and permits. First-time owner-builders face significant challenges and may need to work with construction management consultants or qualify for lower leverage. Professional builders with established track records receive more favorable terms and streamlined approval.
How long do I have to complete construction?
Construction loan terms typically range from 12 to 24 months depending on project complexity. Simple single-family homes may require 12 months, while larger commercial or multi-family projects may need 18-24 months. Extensions are usually available if construction takes longer than anticipated due to weather, permit delays, or other factors beyond the borrower's control, though extension fees or rate adjustments may apply.
Other Property Types
Residential Real Estate
Hard money loans for single-family homes, condos, and residential investment properties.
Commercial Real Estate
Financing for office buildings, retail spaces, industrial properties, and commercial investments.
Investment Properties
Loans for rental properties, income-producing assets, and portfolio-building investments.