A Detailed Guide To Commercial Private Lending
Completing projects on time can be a pain if your business is on a limited budget. Hence, it’s crucial to locate suitable finance sources to launch new projects and outpace your rivals.
Banks offer finance, but the lengthy loan application process makes them unsuitable for most enterprises. Additionally, banks’ reduced lending makes it difficult to obtain the money you require.
Private lenders have become the best choice to finance your business ideas in light of the challenging financial climate. Private lenders provide hard money loans for a range of business needs.
This blog will guide you on private commercial lending in detail and how you can use the loans to outstand your competitors.
Different Types of Private Hard Money Loans
1. Raw Land Loans
You would need to buy undeveloped land if you wanted to construct an office from the ground up. Consider obtaining a raw land loan from a private money lender if you are unable to handle the finances.
2. Workout Loans
Can’t stop your business from going into foreclosure? You can get a workout loan from a private lender to help you limit your debt payments and manage this financial nightmare. They’ll help you manage your payments to prevent foreclosure.
3. Bridge Loans
Consider a bridge loan if you wish to purchase a business property before your rival does. A hard money bridge loan prevents you from selling off your current commercial premises, which benefits you and your business.
4. Construction Loans
Due to a shortage of funding, businesses frequently postpone their construction projects. However, you won’t need to do that if you obtain a construction loan from a private lender. They offer fantastic finance deals and use your business property as collateral to start your development project.
Benefits of Commercial Private Lending
1. Provide a Wide Range of Loans
Private money lenders, as opposed to conventional banks, offer the independence and flexibility to tailor loans to your needs. Private hard money lenders can provide you with various loans such as asset-based loans, raw land loans, commercial hard money loans, construction loans, blanket loans, bridge loans, etc., to support your business’s expansion.
2. Quick Solution
Banks might undoubtedly take a very long time to process your loan application. Avoid banks if you’re looking for speedy funding in today’s competitive market. If the pandemic has restricted your company’s budget, you can choose private money lenders who can streamline the loan application procedure and assist you in obtaining funding quickly.
Reputable private lenders have outstanding underwriting departments that can pre-approve your loan application in as little as twenty-four to forty-eight hours after quickly evaluating your financial situation.
3. Minimal Requirements
There is no doubt that banks have strict lending criteria, which has made it difficult for US businesses to obtain loans. You should be prepared to provide a plethora of paperwork and satisfy many conditions if you’re seeking a bank loan. A bank will ask for the following:
- Credit score
- Debt-to-income ratio
- Documents proving income
- Personal data and bank statements
However, there is no assurance that you will be approved for the bank loan even if you complete all the required paperwork. Working with a reputable private commercial lender who offers low-interest hard money loan options using commercial property as collateral is preferable if you want to bypass the drawn-out application process for a traditional bank.
How Can Commercial Private Lending Help You?
1. Obtain Raw Land
You can accelerate the growth of your business by buying a ready-made property, but the options for customizing your space are limited. Consider purchasing undeveloped land if you wish to engage in the real estate market and construct an office.
Finding financing options for raw land can be a hassle. We recommend you contact a reputable private lender to get hard money raw land loans. You can use the loan to buy raw land at a prime location to take your company to new heights.
2. Purchase Several Commercial Properties
Trying to establish your dominance in the market? Think of getting several commercial properties. However, the financing and acquisition of every property can take a lifetime. To expedite the real estate transaction, you should obtain a hard money blanket loan.
You can receive a single loan for several properties with asset-based blanket loans. It’ll allow you to purchase multiple properties at once with a blanket loan rather than paying for each one separately.
3. Deal With Foreclosure
Is your business having trouble making debt payments? If the answer is yes, you ought to use loans for hard money workouts. Private lenders can help you restructure debt payments through flexible workout loan programs.
4. Completing Your Construction Project
You may be a business owner considering building a new office to grow your company. However, building a new building from the ground up is more complicated. You’ll need substantial financing to finish your project because the cost of building materials is rising daily.
Unfortunately, banks rarely lend money for construction projects as they are risky. We advise you to contact private lenders who can offer low-interest hard money construction loans to assist you in financing your next project.
You can use the construction loan to purchase top-quality materials and hire qualified construction workers to create an eye-catching office.
5. Quick Real Estate Acquisition
Did you know that in 2021, real estate prices rose by 18.8% and that in 2022, they are predicted to rise by 10%? Waiting to purchase a property is not an option in such situations. As soon as you can, it would be best if you acquired a piece of commercial real estate.
We are aware that the process of buying a new property and selling the one you already own might take a very long time. But what if you could get a brand-new property without selling your current one? You can buy new commercial properties with a hard money bridge loan before you sell your current property.
Get Reliable Hard Money Loans from Private Money Lenders Near You
To get an exceptional hard money loan deal, look no further than Commercial Private Equity. We’ve served clients in the private lending industry for over seventy-five years. Our team has developed a three-level loan program to help clients get a hard money loan deal per their specifications.
Our underwriting team works round the clock to evaluate your financial condition and pre-approve your loan application within twenty-four hours. We provide multiple asset-based loans, including workout, blanket, construction, raw land, and bridge loans.
Apply for the specialized hard money loans at Commercial Private Equity today to start your commercial projects.