Want to get a traditional loan for your company’s commercial property goals but need help? You’re not by yourself. Statistics show that banks accept only 25% of small businesses for traditional business loans. But don’t worry, people who want to start their own business or spend! There are many types of commercial lenders besides standard banks. We at Commercial Lending USA know how frustrating it is for you. We’re a correspondent lender with our underwriting team.
This means that we connect you with the best traditional loan choices and open the doors to the diverse world of alternative commercial lenders for you. This blog post discusses the top 7 alternative commercial lenders in 2024, which will help you find the best way to finance your business property.
What are Alternative Commercial Lenders?
First, let’s make the visual more straightforward. Traditional business lenders usually have strict lending requirements, and it takes a long time to approve loans. A lot of the time, they need people with good credit, significant down payments, and long-term business records.
Alternative business lenders, on the other hand, give you more options and make it easier to get the money you need for commercial property. They lend money to a broader range of people, including those with bad credit or just starting as business owners. Alternative commercial lenders are becoming more and more famous because:
- Faster Funding: Alternative lenders often have streamlined application processes, leading to quicker loan approvals and disbursements. This is crucial when acting fast on a promising commercial property opportunity.
- Flexible Terms: Unlike traditional lenders with rigid loan structures, alternative lenders offer more flexibility in terms, interest rates, and down payments. This allows you to tailor the loan to your financial situation and business goals.
- Catering to Specific Needs: Many alternative lenders focus on giving loans to specific types of businesses. There’s an alternative lender perfect for you, whether you’re a new business looking for beginning funding, an experienced investor looking for a fix-and-flip loan, or a business owner needing financing for a specific type of property like a restaurant or healthcare facility.
The 7 Best Alternative Commercial Lenders in 2024
Now, let’s explore the top contenders in the alternative commercial lending arena:
SBA Loan Lender
The U.S. Small Business Administration (SBA) doesn’t directly issue loans. Still, it partners with approved lenders to offer various loan programs specifically designed for small businesses. SBA loans are a fantastic option for startups and established companies, with attractive features like government guarantees, lower interest rates, and longer repayment terms.
OnDeck
OnDeck is a leading name in alternative lending and is renowned for its fast and efficient loan application process. They offer a variety of short-term and term loans, perfect for businesses needing quick access to capital for renovation projects, inventory purchases, or other short-term needs.
Fundbox
Recognizing that only some business owners boast a perfect credit history, Fundbox provides financing solutions for those with lower credit scores. They specialize in short-term working capital loans, which are ideal for bridging cash flow gaps or covering unexpected expenses.
Blueline
Bluevine offers a unique financing option: the revolving line of credit. This gives businesses greater flexibility, allowing them to access funds as needed and repay them over time. It’s a fantastic option for ongoing operational expenses or covering seasonal fluctuations in your business.
Biz2Credit
Biz2Credit is a platform that connects businesses with a vast network of alternative lenders. They specialize in merchant cash advances, a financing option where businesses receive a lump sum of capital in exchange for a portion of their future sales. This can be a suitable solution for companies with predictable cash flow but limited access to traditional loans.
Land Park Capital
Land Park Capital caters specifically to the hospitality industry, offering financing solutions for hotels, motels, and resorts. They understand hospitality businesses’ unique challenges and opportunities, providing tailored loan structures and industry-specific expertise.
Bridgepointe Capital
Similar to Land Park Capital’s niche focus, Bridgepointe Capital specializes in financing healthcare facilities. They offer loans for a variety of healthcare properties.
Choosing the Right Alternative Commercial Lender
There are many different kinds of alternative commercial lenders, making it hard to find the right one for your needs. When making your choice, here are some essential things to keep in mind:
- Loan Type: Different lenders offer different loan products. Identify the specific type of loan you need: a term loan for property acquisition, a construction loan for development, or a bridge loan for temporary financing. Choose a lender that specializes in your required loan type.
- Interest Rates and Fees: Carefully compare interest rates and associated fees from various lenders. Remember, the lowest headline rate might only sometimes be the best option if there are hidden fees or prepayment penalties.
- Loan Terms: Evaluate the repayment terms offered by each lender. Consider factors like loan duration, balloon payments (if any), and prepayment flexibility. Choose terms that align with your business’s cash flow and long-term goals.
- Processing Speed: How quickly do you need the funds? If time is of the essence, prioritize lenders known for their fast and efficient approval processes.
- Experience and Reputation: Research the lender’s track record and experience in financing commercial properties similar to yours. Look for lenders with a strong reputation for customer service and transparent communication.
How Commercial Lending USA Can Help
We at Commercial Lending USA know how hard it can be to figure out the complicated world of business financing. That’s where we come in. As your super broker, we use our extensive network of lenders and our own underwriting experience to:
- Identify the Right Loan Options: We analyze your needs and financial situation to recommend the most suitable alternative commercial lenders and loan products.
- Streamline the Application Process: We guide you through the application process, ensuring all necessary documentation is collected and presented effectively.
- Negotiate Favorable Terms: With our experience and lender relationships, we strive to negotiate the most competitive interest rates and loan terms on your behalf.
Conclusion
Traditional banks are no longer the only ones who can lend money to businesses. If you look into alternative commercial lenders, you’ll find more choices. You might get faster funding, more flexible terms, and financing solutions customized for your specific commercial property goals. Picking the right partner is the first step to a sound financing plan. At Commercial Lending USA, we’re here to help you every step of the way as you look for commercial property financing.
Don’t take out a standard loan if it will get in the way of your business goals. For a free assessment, call Commercial Lending USA right now. Our team of experts will help you understand the different types of alternative business lending and find the best way to get the money you need to buy that commercial property.
FAQs
What are the advantages of using alternative commercial lenders compared to traditional banks?
Traditional banks often have stricter requirements, slower approval processes, and less flexibility in loan terms. Alternative commercial lenders offer faster funding, cater to borrowers with varying credit scores, and can tailor loan structures to specific needs.
How can I improve my chances of getting approved for an alternative commercial loan?
- Have a solid business plan: Demonstrate the viability of your business venture and how the property financing will contribute to its success.
- Maintain sound financial records: Keep your financials organized and up-to-date to showcase your financial health and ability to repay the loan.
- Work on your credit score: While some alternative lenders are more flexible with credit scores, a strong credit history always strengthens your application.
What fees are typically associated with alternative commercial loans?
While interest rates are crucial, be aware of additional fees for alternative commercial loans. These can include origination fees, application fees, processing fees, and prepayment penalties.
How can Commercial Lending USA help me find the right alternative commercial lender?
Our team of experts will analyze your specific needs and financial situation. We leverage our vast network of lenders to identify the most suitable alternative commercial lenders and loan products for you. We also guide you through the application process and negotiate favorable terms on your behalf.
Is there a cost for Commercial Lending USA’s services?
No, our consultations are entirely free. The lender you choose to work with compensates us.
What type of commercial properties do your alternative commercial lender options specialize in?
We work with a diverse network of lenders, allowing us to connect you with financing options for various commercial property types, including office buildings, retail spaces, warehouses, hospitality facilities, healthcare facilities, and more.
What if I have a question that needs to be addressed here?
Please don’t hesitate to contact Commercial Lending USA! Our team is happy to answer any questions you may have about alternative commercial lending or your specific financing needs.
