Tag Archives: commercial lenders

Commercial Lenders Can Lend a Helping Hand to Solving Problems

January 11, 2018Uncategorizedcommercial lender, commercial lendersbigdaddydennis

If you are needing extra financing for your business, whether it be big or small, there are many benefits to working with commercial lenders. Just like when it comes to loan, there are many options out there, so take the time to find the right person to work with.

A bank loan might not be easy to obtain, so that is when working with commercial lenders come in. Income verification is usually needed when dealing with banks and if you are self-employed, that can sometimes be difficult. But when working with other sources for funding, they might not always require this, but other documentation and financial information will be taken into consideration for approval and won’t hold any of it against you.

Sometimes credit issues from the past can creep up and result in low credit scores. Financial issues from the past can hurt your chance when working with banks, but commercial lenders can be easier to work with because they will usually take the time to listen to the reasons for your low credit score and try to understand. This will give you a better chance at obtaining a low if you might not have the best credit history.

It isn’t uncommon for businesses to owe money to the IRS. This can make it really hard to get extra financing from a bank. Commercial lenders can help when this becomes an issue. They are willing to work with you if you are in debt to the IRS and will even try to help you crawl your way out.

Establishing the right relationship from the beginning with commercial lenders will benefit you and your business in many ways.

It can be very stressful dealing with someone else when it comes to your finances and sometimes obtaining extra funding is going to either make or break your business. Take the time to do the research to find the right person to work with and this will help your chances at getting a loan. Opening up about your financial struggles isn’t always easy, but can be a little easier when talking to the right person that will understand what you are saying.

Commercial lenders are the real deal when it comes to obtaining extra funding for your business.

There are a number of banks and lenders to choose from when it comes from loans. Just like there are several different options when it comes to choosing a loan. Each loan and lender come with different requirements and terms, so always make sure to read the fine print. And also keep in mind that if you aren’t dealing with banks, you might face higher interest rates. But this is the price you pay when the deal is risky and is a better option than being completely turned down.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Commercial Lender Barclays struggles to assure investors

December 7, 2017Uncategorizedcommercial lender, commercial lendersbigdaddydennis

The commercial lenders share price has tumbled this year. Barclay’s stock has performed worse than the notably troubled Deutsche Bank. The group is clearly struggling to assure its investors.

While the majority of Barclays European peers have seen their share prices rise by an average of 11 percent, the groups own share price is down by some 13 percentage points. Clearly Barclays has missed the mark for potential investors so far this year. The group is highly concentrated in the volatile UK retail banking sector, and has also expanded credit card loans in the US. Above all Barclays has been focused on expanding its investment banking activities this year. Investment banking has struggled to achieve greater profits in recently and many speculate whether Barclays should reduce lending in this area.

Barclays as a UK based bank has deep ties to that countries retail banking sector. Many investors are considerably wary. UK retail banking has been expanding at rates that many consider unsustainable. Unsecured consumer credit in the UK has grown by 10 percent every year, 5 times faster than borrower incomes. In the UK, many people are finding it difficult to secure more hours at work. Borrower incomes could therefore decline without borrowers becoming officially unemployed. These conditions in the labor market have left many investors uncertain about the stability of consumer lending in the UK. While consumer loans do not account for a massive share of the countries household debt, these loans default at a rate 10 times greater than other loans whenever the country faces a downturn. Bre-exit will only compound investor uncertainty about the UKs economy and Barclay’s exposure to consumer credit.

Here in the US Barclays has been rapidly expanding credit card lending, another sector where the rate of lending is apparently outpacing borrower incomes. Barclays has been expanding its credit card lending efforts in the US by 25 percent since 2013. Many major credit card providers have seen a spike in delinquencies this year. Capital One saw credit card loans that were delinquent for more than 30 days rise by half a percentage point between April and August of this year. This has surprised analysts in view of the strong labor market in the US. Capitol One CEO Richard Fairbank points out that these delinquencies are again the result of lending out pacing growth in borrowers incomes. The rise in credit card defaults may not be dramatic, but it will only add to uncertainty on the part of Barclays shareholders.

Commercial lenders have been struggling to increase investment banking profits, Barclays is no exception.

Historically low interest rates over the past few years have made investment banking far less profitable than it once was. As a result, aggressive lending to less than qualified borrowers has become the norm in this sector. As interest rates rise in the near future cheap investment loans with loose terms will become far too risky to issue. Making it harder for Barclays to achieve a profit from investment banking in the near term.

Still the commercial lender seems to be committed to recapturing investment banking profits.

Tim Throsby, Barclay’s head of investment banking claims that even a moderate rise in revenues in this area would provide a significant boost to the banks’ profits. The bank has since been targeting only investors who can offer substantial business to the bank in the long term. Other financial institutions have adopted a similar strategy and few have found it useful to boost investment banking profits. Still Barclays seems committed to this course of action. The group recently reduced dividends to shareholders in order to expand available credit for investment banking. Considering its tepid share price, the bank may want to consider scaling back these efforts and returning this capitol to its investors.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

What You Can Expect from Commercial Lenders

December 6, 2017Uncategorizedcommercial lender, commercial lendersbigdaddydennis

When it’s time to get a loan, your commercial lenders can make the process might easier. But you want to make sure you find the right lender and know what they can do for you.

If you need a loan, going it alone is not the best option. Especially when it’s professional commercial lenders job to help their clients get the best loan for their business ventures. As you are starting out with your lender search, there are some things you should know about what you can expect from your lender and what you will be expected to do during the loan application process to create a win-win solution.

Experience is one of the first and most important things you should look for when shopping for a lender. Experience is knowledge, and knowledge is power. When you are looking for the right lender, experience goes a long way so make sure the person you chose to work for knows his stuff forwards and backwards.

You can certainly expect your lender to have experience – not only in his or her industry, but yours. What we mean by that is that the lender should have experience in loans with similar projects and ventures as your own. Each industry and business venture has its own unique elements and sometimes that means it requires specialty circumstances. If the lender you are looking to work with has a portfolio of similar projects, this is a good sign. You can also expect that your lender be appropriately licensed.

Experienced lenders will go the extra mile for you.

Commercial lenders that have been through this scenario a hundred times know what is going to work and won’t work – and they can either help you get to the place you need to be or won’t waste your time taking you down a road he know isn’t the right path. They also have the partnerships and connections that can further help you in your business venture. These experienced lenders also go the extra mile to close the deal so you know you can trust them.

Here’s what a lender is going to expect from you.

Be prepared with a business plan, know your up to date credit score and bring any documentation that would prove helpful toward the success of your loan approval. Be sure to ask questions about what your lender is going to need. You should also be prepared to put down some collateral. While there is a lot you should expect from your lender, your lender will expect these things so he can help you improve your chances of getting the best loan negotiated for you. If you’re not sure what your lender will expect from you upon your first meeting, don’t be afraid to ask what is expected of you so you and your lender can start your business relationship off on the right foot!

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Alternative Commercial Lenders

November 24, 2017Uncategorizedcommercial lender, commercial lendersbigdaddydennis

Small businesses, contractors and developers just entering the commercial real estate segment, and those in the retail arena may find obtaining a loan from traditional commercial lenders near impossible. Fortunately, there are alternative lenders that may just say yes when banks and other lenders have said no.

Traditional commercial lenders are often constrained by government regulations and concerns regarding the health of their lending portfolio, leaving some developers and entrepreneurs in certain sectors in commercial real estate unable to obtain the capital they need either due to a total rejection or a partial loan that does not cover the required capital. Many in this predicament are turning to alternative lenders. One such lender offers merchant cash advances. These types of loans are usually taken on by businesses to get them through their non-peak season or to allow them to purchase needed equipment or inventory. Unfortunately, these can come at a high price. These types of loans are set up so that the commercial lenders take a percentage of the daily sales until they have recouped the loan amount and interest which can often be as high as 50 percent.

Other alternative commercial lenders include online lenders that use peer-to-peer lending. These types of loans are usually short-term, right around three years, and the interest rates range from approximately 10 to 25 percent. These types of alternative lenders usually provide smaller loan amounts. Larger amounts in the $250,000 range may have shorter terms and higher interest rates that range from 20 to 40 percent.

Crowdfunding for commercial real estate projects is another avenue that developers are looking into. In 2014, over $1 billion was provided to borrowers in commercial real estate. In 2015, that number doubled to $2.1 billion with up to a 100 percent growth rate expected. These platforms allow individual investors to group together in order to invest in projects that they would normally not have enough capital to participate in. This is good for both investors who wish to expand their portfolio and borrowers who find the increasing competition leading to better terms and rates.

Private Hard Money Commercial Lenders

Private hard money lenders are individuals or groups that provide commercial loans based predominantly on the hard-asset or collateral. Because they are not subject to traditional credit guidelines, they can fund in record-time and place more emphasis on the asset and less on a borrower’s creditworthiness. Most investors have at least one private hard money lender that they turn to when immediate capital is required.

At Level 4 Funding, we offer approval in as little as 24 hours and funding in less than a week.

We are a trusted source of funding that real estate investors turn to for multiple projects. We work with hundreds or private hard money lenders, giving us the advantage when finding capital for a particular project at the best rate and terms. We have a high loan-to-value up to 90 percent, offer interest-only payments, and can offer flexible terms from 3 months to 5 years. Call us for a no-obligation quote.

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Top Things Commercial Lenders Consider When Approving Loans

November 15, 2017Uncategorizedcommercial lender, commercial lendersbigdaddydennis

Working with commercial lenders can seem like a scary thing at first, but if you know how they evaluate your small business for approval, then it isn’t that bad. In fact, the entire process won’t be as stressful!

Commercial lenders take many pieces of information regarding your small business to find out the two main things they want to know for approval. First, they want to know if you are going to be able to repay the loan back and secondly, if you are not going to be able to make payments, what can be collected in return, which is known as collateral.

To start finding these answers, character is often times one of the biggest factors for loan approval. It really doesn’t matter if you have a great deal of cash. Your past financial history will actually say a lot about your character and ability to pay back the loan. Proving that you are able to manage your finances, like by making payments on time, then these are the things that commercial lenders will take into high consideration.

Credit score doesn’t always play a significant part in getting approved or denied, but it is a good idea to try and maintain a credit score of at least 670 to avoid reason for loan denial. A good credit score is going to help back up the fact that you are responsible for your finances.

Commercial lenders not only take credit score, but also collateral into consideration

If you are unable to make payments on your loan for some reason, then collateral is going to be used to repay the loan. Commercial lenders can get a better idea of the value of your assets by reviewing a balance sheet. This can help your small business show your assets and liabilities at an easy glance. Now keep in mind that it is beneficial to have a lot of assets as this will give more reason and a high chance of loan approval.

Detailed personal financial statements are also something commercial lenders are going to take a look at

Personal financial statements are going to come into play because it will give an idea of what type of personal assets you have. Sometimes collateral isn’t the only thing that is going to be used as repayment for a loan that has had missed payments. When obtaining a loan from the Small Business Administration, a personal guarantee requirement is popular. A personal guarantee requirement means that if your business is unable to make payments, then you are personally liable to repay the loan since your business is unable to.

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Beware of Potentially Fraudulent Commercial Lenders

November 13, 2017Uncategorizedcommercial lender, commercial lendersbigdaddydennis

The commercial loan industry can be very intimidating to first time borrowers. Be sure that your lack of knowledge and experience does not make you a target for fake commercial lenders.

Sadly, every industry is plagued by fraudulent impersonators who are tarnishing the reputation of trained professionals in the field. And commercial lenders face this issue as often as any other group of professionals in a rather technical business. Because borrowers are often unfamiliar with the processes and standard operating procedures of commercial lending it is relatively easy for predators to operate on the fringe of the industry taking advantage of would be borrowers. Knowing what to look out for can save you both time and money.

Due diligence is a must when you are preparing to disclose a huge amount of personal and business financial information in the form of a loan application. Obviously, walking into a bank can eliminate this potential hazard. But many borrowers are now shopping for commercial loans online and that can open the door for many issues. It is critical that you research the party and the business that you believe you are working with for a loan application. Verifying the business as a legitimate lender will provide you with security and peace of mind. Anyone can create a rather impressive website now so make calls to the BBB and to the state authorities where the business is operating. Check the registered name and licensing to be sure that they are legitimate.

After your research is completed you will know that you have avoided one of the biggest moneymaking scams of the fake commercial lenders. They are not really interested in stealing your information. What they want is to steal an application fee from you. Fees can range from a few thousand dollars to tens of thousands of dollars so it is a good score for a scam artist. You submit an application and the fees and then never hear from the would-be lender again.

Huge Fees are a Warning Sign

If you are having difficulty getting a loan, also be weary of a lender who offers to all but promise that they can get you a loan if you are only willing to pay a substantial application fee. Unfortunately there are some lenders who are just dishonest enough to all but promise in writing a loan approval when they know that you will not qualify. They might claim to fund high risk borrowers but in fact they fund very fee and just collect huge application fees from the majority of their applicants.

Educate Yourself

If you are new to the commercial lending industry, then the best way to avoid being taken advantage of is to arm yourself with knowledge. Legitimate commercial lenders will answer questions, provide information and invest the time it takes to make sure that you are comfortable with the process. You can also read material from well-known lenders websites and consult with your local bank to learn more about the process and to protect your time and money.

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Tips for Selecting Commercial Lenders

November 13, 2017Uncategorizedcommercial lender, commercial lendersbigdaddydennis

There are many factors to consider when you are searching for commercial lenders. In some cases certain lenders might be more willing to work with you than other lenders.

Seeking a commercial mortgage can be a stressful and overwhelming process. Many novice borrowers are simply searching for the first lender who offers a loan. But often that is not the best financial choice. Knowing which commercial lenders would be more open to working with you and also how to make yourself more appealing to those lenders can eliminate much of the stress of the process and reward you with much more favorable loan terms.

Selecting potential lenders who specialize in loans that are near the amount you desire is a good first step to narrowing down your choices. It is common knowledge in the industry that huge national banks are not often interested in chasing small loans. Not only can it take a very long time to get your application processed but you will also notice that the loan officer’s attention will be quickly swept away when a larger client or application comes in. But a smaller lender will be eager to work with first time borrowers and those who need smaller loans. Likewise, requesting a huge loan from a small local bank is likely to overwhelm them and they will not be able to efficiently process the application or possibly even meet the amount that you are requesting.

Seeking a lender who is close to the property that you are purchasing can also improve your approval chances. Commercial lenders must look at all potential situations including the worst case of a foreclosure. In the event that you default, the lender prefers to take possession of a local property. The logistics of maintaining and selling the property are must easier. In addition, lenders tend to be more willing to assume a greater risk on a local property that they can easily visit should there be an issue with the loan.

Create a Deposit Relationship

If national lenders are not willing to approve your loan request, then you still have the option of working with a smaller local bank. In this case, it is wise to request an appointment with the branch manager to discuss your options. At that time you can show verification of your current business and personal bank transactions and offer to move all of your accounts to their bank upon the completion of your loan approval.

Know What You Need and Who Offers It

You should view commercial lenders as you would any other service provider. You need to select your lender based on your needs and how well they can meet them. You would not hire a huge national cleaning company to come in and clean your 800 square foot office, it wouldn’t be cost effective and they likely would not worry about keeping you very happy. But a small cleaning firm would be happy to have your business and would strive to ensure that you remain satisfied. Filling your commercial mortgage needs is just like filling any other need. Selecting the vendor who offers the services you need will make the experience much more pleasant for everyone involved.

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Commercial Loans In Texas – What You Need To Know About Working With the SBA-Part 1 – Benefits

October 30, 2017Uncategorizedcommercial lenders, commercial loan, commercial loansbigdaddydennis

While there are many sources of commercial loans in booming economies, like that of Texas, many small business owners often turn to the Small Business Administration (SBA) for their lending needs. Even though many small business owners find lots of helps with the SBA, there is a lot to the process.

Dealing with the Small Business Administration is like dealing with any other government bureaucracy. The benefits might be very good for you, but wading through the endless amounts of red tape and paperwork can be discouraging to even the most stalwart of pursuers.

But why should a business owner pursue a commercial loan from the Small Business Administration anyway? Why is the SBA different than any other lender? There are actually a number of benefits that an SBA loan has over traditional lenders,

One of these benefits is that the cost of obtaining such a loan is usually lower than it would be by pursuing a similar loan through a bank or other traditional lender. This means that the borrower will have to put forward a smaller down payment (and some SBA loans actually include, or have provisions to include, the entire cost of the loan).

Another benefit that is incredibly appealing to many small businesses is that there are often lowered requirements in order to secure a loan. While many traditional lenders require sources of collateral or an excellent credit history in order to secure a commercial loan, the SBA, for the most part, does not require a borrower to have any collateral. In fact, the SBA often grants businesses loans based on cash flow, rather than credit history. This makes it an excellent source of funding for those business owners who have taken some financial hits in the past. If decent cash flow can be demonstrated, it is most likely that the SBA will be able to work with you to find funding.

Term lengths and interest rates are another appeal of the SBA to small business owners. The repayment terms are usually much longer than that of traditional lenders, with many commercial loans having a term of up to 25 years. That is a tremendously long period of time to pay a loan back in the world of commercial lending. In addition to a more agreeable timetable, the interest rates of loans from the SBA also has the potential (this is not always the case) to be lower than traditional sources and significantly lower than hard money loans. Longer terms and lower rates mean that small businesses can focus on growth, rather than debt.

How can I use the benefits to my advantage if I am looking for a commercial loan to expand my business in Texas?

If you are in a position where your small business needs access to capital, but you are either just starting out or have had some credit problems in the past, the Small Business Administration might be an excellent source of help with a commercial loan to help you achieve your business goals. This could even help you to take advantage of a great business opportunity with a commercial loan in Texas.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips on How to Effectively Find the Right Commercial Lenders for Your Business

October 17, 2017Uncategorizedcommercial hard money lenders, commercial lendersbigdaddydennis

Commercial lenders are there to lend a helping hand when companies need extra assistance with financing. But not every borrower is experienced enough to know what to expect when looking for the right lender for their business goals.

Sometimes your company needs some extra financing to restructure or even expand your business. Working with commercial lenders can be different in every scenario, but there are some basics to always remember when looking for extra finance help for your business.

After you have done some brainstorming and plenty of research, it is time to design a detailed plan for how you want to finance your project. It is wise to start this process by looking for commercial lenders in your area. Location is important and looking for local help is extremely beneficial because they will know the area well and understand all of the local regulations when it comes to financing. Dealing with a skillful and knowledgeable professional will help this daunting process go a lot smoother.

At the beginning of the process, after you find someone local to work with, be prepared when you go to meet with them by giving a complete outline of your project plans. The outline should include things like that estimated cost of the project and a summary of all of the future projections along with as much background information as possible of all the properties and people involved in the process. You may think that all of that time making a plan could go to waste since It may not always go beyond the preliminary review. But keep in mind that it is a good way to organize your thoughts and ideas on paper and a denial early on may cause you to reflect on your project to see if any changes should be made. You might be getting denied for a reason!

Commercial lenders should offer their best advice to borrowers

After the review process is complete and the lender is ready to move forward with the rest of the process, they should be available to offer any support and advice that is needed. Every borrower needs to fully understand all of the terms in the agreement. So, it is crucial to look for help from someone you can trust, that is dependable and is able to answer all of your questions.

There are plenty of things to consider when looking for commercial lenders

It can often be a time-consuming and stressful task to look for commercial lenders. Then after you find the right one, you have to go through the whole process of the application and working out the terms. It may seem impossible for this whole process to go smoother, but if you spend some time really thinking about your financial plan and design an outline that will be easy to move past the preliminary review, then you are half way there! Finding the right person to work with your business and your finances is going to be important for a pain free loan process from application to closing.

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A Few Things Borrowers’ Should Consider When Selecting Successful Commercial Lenders

October 17, 2017Uncategorizedcommercial hard money lenders, commercial lender, commercial lendersbigdaddydennis

A handful of borrowers are looking for more than just a trusting relationship when it comes to choosing commercial lenders. The whole lending process, from the start of the application to the very last day of closing, has become more of an interview process, with a lot of competition!

Since there are a number of commercial lenders that borrowers can choose from, this is leading to borrowers becoming more and more picky when choosing the right lender to help them with their finances. Borrowers have always wanted to get the best deal or at least a fair price along with reasonable terms, but they are looking at a lot of other variables besides just the best deal.

Being able to have a variety of customizable options plays a big role when it comes to borrowers picking the right lender for them. A one-size fits all plan obviously doesn’t work for every company, and they know this! This then leads to them wanting to see more specific options that will help them reach their business goals. This is where the top lenders come in and will be able to sit and listen to the needs of their borrowers. They are there to give them the best advice and options that suit their business goals.

When it comes to dealing with commercial lenders, the response time is always crucial. We live in a very fast-paced business environment, where technology is at the top of our fingers and constantly changing. Of course, there is going to be various response times, like when it comes to proposal delivery time to the time it takes to deliver all of the closing documents. If a lender can accomplish these steps in a timely and quick manner, then they will stand out from the other lenders.

The trust and dependability of commercial lenders are always benefits that every borrower looks for

Whenever you are dealing with someone and your finances, you want to make sure you establish plenty of trust early on along with dependability. This makes for a strong relationship and even the possibility of a lasting relationship with commercial lenders. Even when the news isn’t always the best, lenders need to be up front and honest with their customers, which in return will earn their respect. It is valuable to find someone you can communicate openly with about your financial decisions.

Commercial lenders need to be the real deal to stand out from all of the other lending competition

Borrowers are looking for relaxed credit terms and low prices, but they take many other factors into consideration when choosing the right lender to deal with. Variables like having options, a fast response time and building a trusting relationship are just as important to borrowers as finding a good deal.

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