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Home Commercial Loan Information Light Industrial Property
Light Industrial Property PDF Print E-mail


light industrial commercial propertyWorld Net Capital I offers commercial loans on light industrial property at very favorable rates. Light industrial is characterized by a small size facility where no heavy manufacturing or large specialized industrial process takes place (such as automobile manufacturing, steel mills). Light industry is usually less capital intensive than heavy industry, and is more consumer oriented where products are produced for end users rather than for use by other industries. Light industry facilities typically have less environmental impact than those associated with heavy industry, and zoning laws are more likely to permit light industry near residential areas. Office space within light industrial property ranges from 3% to 25% of the total area. The buildings must include sufficient plumbing and lighting to accommodate employee personal needs. Examples of light industrial properties may include: product assembly, home service industries, clothing manufacture, shoe making, furniture, consumer electronics, and home appliances. These properties typically do not include any type of heavy machinery, welding operations, cranes or hazardous materials. The land where the property is located has to be properly zoned.


Owning your own industrial building puts your company in a stronger borrowing position. World Net Capital I can provide loans for expansion, refinancing, purchasing another business, and for a line of credit. A line of credit can provide cash for many situations, such as expansions, equipment repair, material purchases, and unforeseen expenses. Generally speaking, light industrial property provides your business with a large amount of equity which can increase the overall value of the business. The downside to owning light industry includes the high initial capital cost and the ongoing maintenance and improvements that are usually required.


The borrower must perform the normal planning, research, analysis, and preparation before applying for a commercial loan. The business plan and cash flow statements are a critical part of the approval process. Aside from the usual financial review, lenders consider many factors before approving the loan, including: whether it's owner-occupied or investor owned; potential adverse environmental conditions and liability; condition of the property and equipment if it is an existing facility; potential maintenance costs; vulnerability to sudden economic downturns; production capacity and utilization; payment histories and tenant credit (if investor owned); lease terms and time left on the lease if investor owned and tenant occupied; previous insurance claims; and building defects and potential problems. The NOI (net operating income) will dictate the amount of funding an investor can get with the industrial building loan.

Last Updated on Wednesday, 11 September 2013 16:40

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