A working-capital loan secured by real estate is a short-term business loan — at BuildUp Capital, $100,000 to $10,000,000 over 6 to 18 months — secured by commercial or residential property the business owns in Texas, Colorado, Utah, Nevada, Arizona, Oklahoma, Idaho, Montana, or Wyoming, with our loan in first position. Payments are monthly and interest-only, principal is due at the exit, and rates start at 10% with a 1–4% origination fee and an underwriting deposit credited at closing. It fits a defined gap with a visible end: a large order, a seasonal low, a bank line that was pulled. A term sheet typically issues within 5 business days. Rates depend on term, collateral, lien position, and borrower profile, and are subject to change. Not every borrower qualifies for the lowest rate.
Working capital is the loan banks like least. It is not tied to a purchase, it is needed quickly, and the reason is usually a gap rather than an asset: payroll due before a customer pays, a season that strains cash every year, a renewal the bank declined for reasons that had nothing to do with the business. When the business owns its real estate, that gap has collateral behind it — and a lender who underwrites the property, the business, and the exit can typically close in around 10 days once diligence items are received, rather than months.
Structure: the loan sits in first position on the property. If there is an existing mortgage, we refinance it into our loan and the equity above the payoff is your working capital — one loan, one lender. Payments are monthly, interest-only, across a 6–18 month term; principal is due at the exit, which for working capital is usually the receivable collecting, the season turning, or a bank line coming back. Prepayment is allowed, so if the gap closes early, the loan can too.
Cost, plainly: rates from 10%, priced to term, collateral, and borrower profile; a 1–4% origination fee stated in your term sheet before you proceed; and the ordinary third-party closing costs of a real-estate loan. Rates depend on term, collateral, lien position, and borrower profile, and are subject to change. Not every borrower qualifies for the lowest rate. Once you accept the term sheet, we collect an underwriting deposit before diligence begins, and it is credited toward your closing costs at closing. It exists so both sides are committing real resources to a deal we intend to close — the amount is stated in your term sheet before you sign anything. The honest comparison is not with the bank line you cannot get right now — it is with your real alternatives for closing the gap, and with the cost of not closing it.
How it differs from a line of credit: a line is revolving and underwritten on the business’s cash flow and covenants; this is a term loan underwritten on the property and the plan, with a fixed end. How it differs from a merchant cash advance: a cash advance is quoted as a factor rate and repaid by daily or weekly debits against your receipts, a structure that breaks operating businesses; the Federal Reserve reports equivalent annual costs on those products that “may exceed 80 percent or even rise to triple digits”. A real-estate-secured working-capital loan is one monthly payment, transparently priced, with the exit planned on day one.
No real estate? If large companies or government agencies owe you on invoices, our receivables-backed lines of credit are secured by those invoices instead and are available nationwide. If you do own real estate in Texas, Colorado, Utah, Nevada, Arizona, Oklahoma, Idaho, Montana, or Wyoming, the fit check on this site shows the loan-to-value and a straight read in about a minute, before asking for contact details.
Own real estate and need capital? Get an instant read on fit — see if your deal qualifies → (60 seconds, no contact info needed), or send us the whole deal →.
Related: Working capital loans · Lending in Colorado