Commercial Mortgage Loans – Strategies for Eight Difficult Commercial Financing Situations

It is always complex and difficult to get commercial mortgage loans approved. A business owner should realize that many situations of commercial mortgage loan are there which are hard to be approved. It is always recommended to consult any expert from any renowned financial services provider like New City Financial and get rid of all the difficult situations in a commercial mortgage loan. Eight such difficult situations and the strategies to overcome them are mentioned below:

1.      Commercial loan which should be closed in maximum 60 days

In such cases, the borrower has the option to get funds from a non-bank business lender. Here, most of the commercial loans get closed in 45-55 days.

2.      Commercial loan which doesn’t work deprived of long-term financing

Some commercial lenders consider 3-5-year time as the longest time prior to becoming it a balloon payment. This is not long time and a longer-term finance option often leads to the success of a business. So, you can consider any non-bank lender who can easily lend money for 25-40 year on a commercial property.

3.      After closure of loan, giving financial data to commercial lender

In such cases, commercial loans through non-banking commercial lenders should be preferred because they usually don’t require any income verification or business plan prior to or after the loan closure.

4.      Self-employed borrower or when borrower receives income in the form of incentives, commission or bonus, it becomes erratic to document it properly

Non-banking commercial lenders have a solution to this because they use a business loan program of Stated Income and it doesn’t require any tax returns or income verification.

5.      When a borrower wishes to refinance the existing commercial property, and utilize $500,000-$1 million received for purchasing another property

Banks usually have the limit of $100,000-$250,000 but a non-bank commercial financer can give the borrower cash up to $1 million and the borrower can utilize it without any restrictions.

6.      When a subordinated debt’s some amount is required by borrower to reduce cash required for buying a commercial property

With a commercial loan from non-banking lenders, the borrower can get CLTV (Combined-Loan-to-Value) ratios of 95% with subordinate finance.

7.      Seasoning and Sourcing of ownership or assets

In comparison to commercial lenders like banks, non-banking lenders does not have any limitations or requirements involving either seasoning/sourcing of funds or ownership.

8.      When a borrower requires only $100,000 commercial loan

When most lenders have starting lending limits for commercial loan as $250,000-$300,000, a non-banking business lender can easily give a minimum commercial loan of $100,000.

So, from all the above discussed situations, it can be inferred that the only and easy solution for all such problems is non-bank business lender.