How to Find the Right Commercial Lender for Your Business Loan Needs

4page_img3-bigWhen you determine that you are ready to obtain a loan for your company, it’s important that you do your research in all areas. One of the most important things to do it find a commercial lender that you feel confident will get the best loan terms for you.

The world of commercial loans can be complex and confusing. That’s why it’s all the more crucial to find a lender that will make your loan the priority. Your commercial lender has the power to negotiate better rates, terms, and repayment structures, and can point you in the right direction throughout the process of applying for a loan.

When you are seeking a loan for your company, there is no shortage of options. There are various types of loans that are specific to certain business needs, such as equipment financing, and there are even short term and long term loans that are defined by their loan amount and payback timeframe. If you are seeking your first loan, the waters can quickly get murky and you can easily become frustrated, and even make a hasty decision just because you are so weary from the process. Seeking the counsel of a commercial lender can help you avoid the pitfalls associated with applying for a first time loan.

Traditional banks can serve as a direct commercial lender when it comes to their commercial offerings, but working with conduit lenders is another option. This means a conduit lender can help approve a loan and maintain it for a specified amount of time. After that term, however, they can sell it to a third party agency that is security backed. This is typically done as a short-term investment called securitization. Loan payments are designed in this type of financing to avoid prepayment, which allows for a great deal of security.

Pretend you are interviewing an employee when you meet with a lender

Consider it an interview for the job of being your lender and advisor. When you talk to commercial lenders, make sure you ask plenty of questions about their area of expertise and if they have ever worked with a business similar to yours, with similar loan needs and budgetary restrictions. Getting testimonials is a good idea, too. Before seeking commercial lenders online, ask around – talk to other small business owners to see if they have pursued loans with the assistance of a lender and if they had a favorable experience. If you have a solid relationship with your bank, that is a good place to start as well.

Take heed: not every commercial lender will handle your loan application in the same way.

Sometimes there is no “hard and fast” way to tell if you have found the right lender for you. Some of it is about trust. Some of it may come down to customer service or a “feeling” that this person has your company’s best interest at heart. Regardless of how you proceed with your loan, make sure you are happy with all the terms before signing any documentation. It’s also a good idea to have an experience financial attorney look over the agreement to ensure there are no hidden fees or “fine print” that your lender failed to mention. All in all working with a lender should be a win-win situation.


Dennis Dahlberg
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177 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.

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