Is Your Lender Right for You?

Many times business owners will turn to the bank in which they have been a customer for years in search of financing for their business.  This financing need is usually as a result of business growth and comes in the form of a need for working capital or an opportunity to purchase an asset.  The most common asset purchase is that of commercial real estate – either for business use or for investment purposes.  Although visiting your long time bank is generally a good place to start, many borrowers are disappointed in the terms in which the bank is willing to lend money, specifically when it comes to commercial real estate.   

What most borrowers do not realize is that there are usually many different ways to meet their financing goals.  Each borrower has a unique set of objectives to achieve including: 

1.     Finding the lowest rate 

2.     Borrowing the most amount of money

3.     Finding the longest amortization for their loan to keep their payments down

4.     Finding a loan with flexibility to prepay it back

5.     Finding a loan that is easy to obtain without documenting outside income

6.     Finding a commercial real estate loan that does not require guarantees 

One of the most successful ways to meet all or some of the above objectives is to have access to global financing markets, whereas most traditional banks only have access to bank funded loan programs.  As the global finance markets continue to become more accessible to consumers, there are increasingly more financing options available for consumers.  These options usually combine many of the unique characteristics that borrowers are not able to obtain from their local bank.   

There are many benefits gained by working with a commercial lender that has a broad array of financing options above and beyond traditional bank funding.  A good commercial lender will work closely with the borrower to understand the client’s financing objectives, then work to develop the most appropriate lending program to achieve those objectives.   

Technology continues to change many aspects of our lives including the way we run our businesses.  It allows consumers an opportunity to seek the most aggressive funding solutions for their commercial lending needs. Through the use of technology, a good commercial lender will have a strong network of relationships with various funding sources in the global financing markets that will save their clients money.  By offering a variety financing solutions from companies that they represent including not only banks, but also insurance companies, credit unions, pension funds, SBA providers and many other non traditional lending sources.