Commercial lenders for commercial loans can vary greatly.
Private Commercial Lenders
Short term commercial loans are generally done through private lenders. These private lenders will often do loans when a bank says “No”
Short term Lenders up to 3 months
The loans from these private lenders are normally very settled very quickly. Sometimes within a few days. Interest rates for these types of commercial loans are generally higher and there must be a clear exit strategy. Security is normally commercial property or residential property in a company name. In some cases private lenders may also take non property security.
1 year lenders
Generally private lenders who look for a quick exit strategy. After the one year it is common to take the loan to a bank commercial lender at a lower commercial interest rate.
Private Commercial lenders advantages:-
Normally approval can be very quick. Sometimes within hours.
Less paperwork. To apply the application form is normally only a page.
Flexible loan terms.
Flexible in regard to credit issues.
Non Bank institutional lenders
These commercial lenders are larger than the small private funders, and again do loans that don’t fit within the banks criteria. Even though they are non bank, they will still do larger size loans. Loan terms through these institutions vary from 1 year out to 30 years. It is common for these lenders to use accountants declarations and, or BAS returns.
Bank Commercial lenders
The major advantage of bank lending is the lower interest rate. As lending is all about risk/return banks concentrate on clean credit applicants. The other major advantage is large commercial loan size.
The big 4 do the majority of bank lending however some of the other banks are now doing commercial lending that the major banks wont do. Examples include 25 year loan terms and leasedoc products.
In summary, to know more about commercial lenders, please call us.