Working Capital, FF&E, & PIP Loans
Flexible Funding for Daily Needs, Equipment, and Property Upgrades
Working Capital, FF&E, & PIP Loans
Optimize Your Operations and Enhance Your Property
At Montgomery Lending, we understand that successful real estate investments and business operations often require more than just the initial property acquisition financing. We offer specialized loan solutions designed to support your property's ongoing needs, from day-to-day liquidity to significant asset upgrades and mandated renovations.
Working Capital Loans
Ensure Smooth Operations and Financial Agility
Working capital is the lifeblood of any successful business, providing the necessary liquidity for daily operations and unforeseen opportunities. A Working Capital Loan from Montgomery Lending offers flexible funding to bridge cash flow gaps, cover operational expenses, manage inventory, and support short-term growth initiatives. This type of financing ensures your business has the immediate funds required to maintain stability and react quickly to market demands without disrupting long-term investment strategies.
Whether you need to cover payroll, purchase supplies, or navigate seasonal fluctuations, our working capital solutions provide the financial agility to keep your business running efficiently and effectively.
Key Benefits:
- Operational Stability: Maintain smooth day-to-day operations.
- Cash Flow Management: Bridge gaps and ensure consistent liquidity.
- Flexible Use: Fund inventory, payroll, marketing, or unexpected costs.
- Quick Access: Timely funding to capitalize on opportunities.
FF&E (Furniture, Fixtures, and Equipment) Loans
Equip Your Property for Success
FF&E loans are designed specifically for the financing of Furniture, Fixtures, and Equipment crucial to the operation and appeal of commercial properties, particularly in hospitality, retail, and office sectors. These loans enable property owners to acquire, upgrade, or replace essential assets suchs as hotel room furnishings, restaurant kitchen equipment, office technology, and lobby décor without depleting valuable working capital.
Investing in high-quality FF&E directly impacts guest experience, operational efficiency, and property valuation. Our FF&E financing solutions provide the capital needed to keep your property modern, competitive, and fully functional, ensuring a superior experience for your customers or tenants.
Key Benefits:
- Property Enhancement: Upgrade and modernize essential assets.
- Preserve Capital: Fund equipment without impacting liquidity.
- Improved Operations: Acquire efficient and reliable tools.
- Increased Value: Enhance guest/tenant experience and property appeal.
PIP (Property Improvement Plan) Loans
Transform Your Property to Meet Brand Standards
For hospitality property owners, particularly those operating franchised hotels, a Property Improvement Plan (PIP) loan is essential. A PIP is a mandated list of renovations or upgrades required by the franchisor to ensure the property meets current brand standards, quality, and guest expectations. These improvements can range from lobby redesigns and room renovations to infrastructure updates and amenity additions.
PIP loans provide the dedicated capital needed to complete these often-significant projects, allowing you to comply with brand requirements, avoid penalties, and ultimately increase your property's market value and revenue potential. Montgomery Lending's PIP financing ensures you can execute these critical upgrades efficiently, maintaining your brand affiliation and securing your investment's long-term success.
Key Benefits:
- Brand Compliance: Meet franchisor-mandated renovation requirements.
- Value Appreciation: Increase property value through strategic upgrades.
- Enhanced Appeal: Modernize facilities to attract more guests.
- Sustainable Success: Secure long-term profitability and brand affiliation.
Typical Loan Rates & Terms Overview
Working Capital Loans
Interest Rates (APR):
- Lines of Credit & Term Loans (Conventional): Typically 3% to 15% APR for well-qualified businesses.
- SBA Loans: Generally 10.50% to 15.50%.
- (Excluding very high rates from certain online/short-term lenders or MCAs)
Loan Terms:
- Lines of Credit: 6 to 24 months (revolving).
- Term Loans: 6 months up to 7 years (up to 10-12 years for SBA).
Loan Amounts: $1,000 to $5,000,000+
FF&E (Furniture, Fixtures, and Equipment) Loans
Interest Rates:
- Dedicated FF&E Financing: Fixed rates often 4% to 10%.
- CMBS (for hotels): Tied to indices, potentially around 3.00% to 4.0% over the index.
- (Excluding higher rates for very high-risk profiles)
Loan Terms:
- Typically: 3 to 10 years (based on equipment useful life).
- SBA loans: Can extend up to 25 years.
Loan Amounts: $5,000 to $10,000,000+
PIP (Property Improvement Plan) Loans
Interest Rates:
- CMBS: As low as 4.30%.
- Other Commercial Loans (average): Often in the 5% to 10% range, depending on the specific financing vehicle and borrower profile.
- (Excluding higher rates for very specific high-risk or rapid bridge scenarios)
Loan Terms:
- Dependent on the underlying loan: (e.g., 25-30 year amortization for CMBS).
Loan Amounts: $500,000 to $10,000,000+ (PIP costs can be tens of thousands per room).
These ranges represent what a strong or average borrower might expect to find when seeking these types of commercial loans through traditional or well-regarded alternative lenders. Always remember that actual terms are subject to lender underwriting and your specific financial circumstances.
Get Expert Commercial Mortgage Solutions
Montgomery Lending is here to help you secure the right financing for your investment goals.
Whether you're looking for bridge loans, structured financing, or creative funding solutions, our team is ready to assist.
📩 Submit Your Inquiry and let’s tailor a lending strategy that works for you!
📞 Need immediate assistance? Call (574) 276-4611