Business expansion often requires more than vision. It takes capital, timing, and the right financing structure to make the leap successfully. At Enact Partners, we recently worked with an experienced restaurateur who saw the chance to expand into a new market with a second hot pot restaurant location. By strategically using equity from multiple properties, the borrower secured the capital needed to launch while positioning for long-term financing.
Background
Our borrower, a seasoned restaurant operator, had already established a successful track record with other restaurants. When the opportunity arose to acquire and transform a nearly 10,000 square foot retail property into a new hot pot concept, they invested significant personal capital, more than $2.5 million, into renovations.
The Challenge
Even experienced operators face the challenge of balancing upfront investment with ongoing operational needs. While the borrower had funded the acquisition and much of the renovation work, they needed additional capital to finish the project and keep business momentum moving. At the same time, a flexible loan structure was essential to allow the restaurant to ramp up operations.
The Loan Structure
Enact Partners structured a $2.385 million, 12-month bridge loan secured by the newly renovated property, supported further by additional investment property collateral. The structure included:
– First trust deed on the Sacramento property
– Additional security through second trust deeds on other investment holdings
– A Dutch interest structure with half of the payments supported by an interest reserve
– Full recourse and borrower guaranty
This balance allowed the borrower to cover debt service while giving time for the restaurant to reach stabilized cash flow.
Why This Matters
This case illustrates how business-purpose lending provides options beyond what banks typically offer. Traditional lenders often require rigid deposit relationships and extended approval timelines, which do not align with the fast-moving needs of experienced operators. By contrast, Enact Partners focused on the strength of the borrower, the quality of the collateral, and the plan for repayment.
Outcome
With Enact Partners’ financing, the borrower successfully opened their second restaurant location, strengthening their brand and expanding their reach. The loan not only provided capital but also demonstrated how equity in real estate can be leveraged to support business growth.
Grow Your Business – Right
Enact Partners continues to work with business owners and investors who see opportunity in their real estate holdings. Whether it is opening a new location, upgrading facilities, or unlocking working capital, we structure loans to match the vision.
Business growth depends on timing and execution. By working with direct lenders like Enact Partners, entrepreneurs can unlock equity in their properties and move quickly on the opportunities that matter. If you are ready to explore financing for your own business expansion, we invite you to start by submitting our loan request form.
