I own my business building, it is a restaurant. It is worth about $400,000. I have average credit. Can I use my building to take out a loan to reinvest in my business? How easy is the process if yes?

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    It's much easier to get a business loan when you have equity that can back it, not a difficult process, many banks offer Business Equity Loans, just research to make sure you get a good rate and favorable terms. – Hart CO Jun 2 '17 at 18:54
  • Just remember, if your business fails, then you lose the business and your building. Most restaurants fail. – Simon B Jun 3 '17 at 23:07

There are two options (according to Wells Fargo). You can either apply for a Business/Commercial Equity Loan or a Line of Credit. A loan is what it sounds like - they give you a lump sum of money for you to use and you have to pay it in monthly installments. A line of credit is like a credit card, you have money that you can borrow (up to a certain amount) and you have to make monthly payments. The process can differ for different business, they probably look at what your real estate is worth, how much money you are generating from it, etc.

I am not recommending or endorsing Wells Fargo, other major banks offer the same types of products, Wells Fargo just happened to appear first when I searched for "business line of credit".

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