Business Loans Without Banks – Reasons Not to Go to a Bank for a Commercial Mortgage
Running a business is not at a very simple task. There is a lot of chance that a sudden need for money arises out of nowhere. Also you may wish to make an extension to the existing business. This may be to increase the profit or may be to stay in the competition. There are numerous financial institutions that offer such loans to entrepreneurs. Experts advice their clients not to approach a conventional bank for getting a commercial mortgage. The reasons of this are numerous and some are:
The first reason is that most of the banks will have a maximum limit on the amount of money that they can lend to an entrepreneur. In the case of other financial institutions, the limit is chosen by the institution and hence you will be able to get the entire amount that you need.
The second reason is that you will have to pay a up front commitment fee. In the case of non bank business lenders the customers will not have to make any up front payment. In the case of banks this fee is a considerable as well.
Most of the banks will tend to deny loans to those entrepreneurs who run business like automotive industries, funeral homes etc. Such business need a number of different special quality certificates and hence you will need all of these to be even able to file a request for a commercial mortgage.
You will need to write down all your plans and strategies in the loan proposal if you are applying for a loan from a bank. But in the case of a non bank financial institution, there is no need for stating all the different plans that you have about the business.
Tax statements are mandatory when it comes to getting loans from banks. And if there is even a small problem with the statements, the loans will be declined. Such statements are not needed in case of non bank institutions.