You may think you know which commercial lender to work with when you decide you need commercial financing, but you may want to think again. Every commercial lenders is different and offers different benefits.
In general, you quickly see that working with any commercial lender can be beneficial. However, you should make sure that the particular lender of your choosing is offering you the benefits that are tailor-made for your market or niche and overall commercial venture. In other to do that then, you need to ask yourself, what kinds of benefits are you looking for?
For instance, you may be considering securing commercial financing from your local credit union versus a more traditional lender, which is fine. However, it is important that you note the potential benefits. For example, most credit unions have stood the test of time or rather the economy, thus they are able to lend more money. Moreover, credit unions offer flexibility, which means that you are more likely to get approved for commercial financing, even if you are a small business or startup.
Continuing with the credit union lending scenario, you will also find that these particular lenders are able to offer financing with better rates as well as lower fees. Being able to secure financing with lower fees and rates that are more formidable, definitely sounds like a benefit that most borrowers would want. If you are curious as to why credit unions can offer such benefits as these, well the reality is that credit unions are in a different class than traditional lending institutions. In other words, credit unions are actually non-profits thus the money exchanging hands would be similar to using a private lender. Consequently, you benefit from their classification because they can offer the typical benefits you would see if you were working with a business associate, family member and so on.
In addition to the above-mentioned benefits, lenders such as credit unions are also able to streamline the approval process for several reasons. One reason, in particular, is that credit unions who offer commercial financing tend to be local, which means you know more about the local credit union and its operations. This allows you to work with people in the community who under your market. Furthermore, they know what you and your business are capable. Ultimately, this makes the lending process less complicated.
Advice for Getting the Most out of your Commerical Loan Deal
With that being said, you can see how even just facet of lenders such as credit unions can offer different benefits than say your standard lending institutions. This is why it is important to do your research and play around with your options—do not just pick the lender everyone picks. Ultimately, once you decide which lender is best for you and your needs, give yourself a helping hand by showing up prepared. This means having your business plan, getting organized as well as offering tangible proof that you can, in fact, pay back your loan then there will be nothing left to do but reap those benefits.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.