Many business owners avoid large real estate investments by renting or leasing their facilities.
Other small businesses that own their own buildings, land or equipment can turn equity into cash by mortgaging the property to the bank, commercial finance company, savings and loan organization or insurance company. Real Estate loans on commercial or industrial property are usually available for up to 75 percent of the property's appraised value. Repayment, usually monthly, is amortized over 10 to 25 years, with payments completely covering the loan by the end of the loan period. Shorter payment periods or balloon payments can sometimes be arranged. If needed it is often possible to obtain a second mortgage on the owner's remaining equity in the property.