Benefits of Non-Bank Commercial Loan Finance

Non-Bank Loan Options

There are numerous options for commercial property financing. Depending on the particular circumstances of your business, one option may be notably more advantageous than others. You could consider of non-bank commercial lending. This is a powerful alternative to traditional bank financing that offers a major benefit – reduced paperwork!

Reduced Paperwork

A bank statement program is a non-traditional mortgage solution that allows applicants to skip showing tax returns, pay stubs, W-2s and other employer verification forms. Alternatively, they may easily provide bank statements as proof of income. This is called the bank statement program and can be very handy when providing standard documents is a problem.

Speedy Closings

Working with a direct lender that offers their own in-house underwriting professionals allows a flexibility that traditional lenders may not be able to offer every applicant. In most cases the closings can happen in as fast as 30 days (45 is average). 

Reduced Fees

A lender like Silver Hill doesn’t require any lender fees. In fact, the only fees most borrowers incur when they submit their inquiry through this website are the standard third-party expenses to be expected in any commercial property transaction. Borrowers are responsible for appraisals, legal and closing costs. This is a perk as most lenders charge an origination fee and a processing fee.

Who Benefits from Non-Bank Commercial Loans

Some borrowers won’t mind providing full documentation when applying for a loan, while other investors will. We’ve highlighted a few types of borrowers/applicants that may be a good fit for a non-bank solution. 

  • Self-Employed Borrowers
    While people who work under an employer have a collection of pay stubs and receive a W-2 form at the end of the year reflecting their total earned income, self-employed professionals file their taxes differently and do not have access to these types of documents. What they do have are bank accounts and can use their bank statements to show income. Some lenders may require 12 consecutive statements while others require only half that.
  • Borrowers who struggle to show consistent growth through tax returns
    Imagine this: A small business owner runs a successful detailing shop and wants to refinance the mortgage on her property to make improvements to her business. The only problem standing between her, and the loan is a bankruptcy filed years ago that’s tainting her credit history. Although this borrower currently has a booming business and is credit-worthy, she will likely struggle when looking to secure a refinance because of a) poor credit history and b) insufficient documentation due to her self-employment status. 
  • Borrowers who need more flexibility than a bank is willing to provide
    Even if your client is able to produce full documentation, they may still prefer to keep the process simple and only provide bank statements when applying for a commercial loan. They may require “unlimited” cash out in order to take advantage of an opportunity, or they may need the money faster than the bank is willing to give it (traditional lending can take upwards of three months even for the credit-worthy applicant).

What's Next?

If you would like to know more about this type of lending and have a transaction that you would like considered, you should complete the short form and let the lender explain your specific options.

Copyright © 2022