The Problem: Expensive Business Credit
Traditional Business Loan Reality
Business owners face a painful reality: bank business loans come with high interest rates (8-15%) and short repayment terms (3-7 years). This creates crushing monthly payments that strain cash flow precisely when the business needs capital to grow.
The Solution: Home Equity Leverage
Property-Backed Capital
Real Example: ₪500,000 Capital Need
Business Loan
- Amount:₪500,000
- Interest Rate:8.5%
- Term:5 years
- Monthly Payment:₪9,800
- Total Interest Paid:₪88,000
Home Equity Release
- Amount:₪500,000
- Interest Rate:5.5%
- Term:20 years
- Monthly Payment:₪3,300
- Total Interest Paid:₪292,000*
* While total interest is higher with a longer term, the monthly cash flow difference (₪6,500/month = ₪78,000/year) can be reinvested in the business for growth that far exceeds the interest cost difference.
Frequently Asked Questions
Frequently Asked Questions
Financial engineering means using personal real estate assets to fund business needs at mortgage rates (5-6%) instead of business loan rates (8-15%). Instead of expensive short-term business credit, you leverage your home's equity with longer terms and lower rates, dramatically reducing monthly cash flow pressure.
Optimize Your Business Capital Structure
Let us analyze your property assets and business capital needs to design the most cost-effective funding strategy.
Legal Disclaimer
The information and simulations presented on this website are for illustrative purposes only and do not constitute a binding offer for credit or financial advice. Credit Approval: Subject to final underwriting, clean credit data (positive credit score), clean banking history, and meeting the threshold requirements of the financing institutions. Interest Rates: The interest rates displayed are estimates only, based on average market data, and may change at any time according to the client's individual risk profile and economic conditions (Bank of Israel interest rate changes / CPI). No Commitment: RealFix does not guarantee loan approval or the terms displayed in the calculator. E&OE.