As a borrower it can be difficult to get information about commercial lending. While there is quite a lot of information and comparison sites for residential loans on the web commercial lending isn’t nearly as visible. Much of this is because commercial lending covers such a wide range of properties. From small retail stores to apartment buildings to warehouses to big factories, it’s difficult to compare the properties, let alone offer one loan to fit them all!
So while many lenders for residential property do an initial assessment of the loan application by their computer software, commercial lending is much more hands-on. Every application is individually considered by a person from the beginning and this highlights an important part of commercial lending – it’s not just about the numbers. The lenders use the ‘5 C’s of Credit’ to assess applications (see my post about this for details) and this means that with commercial loans the whole picture of the borrower, the loan, the property, the market are all important in commercial lending.
The way an application is presented is therefore very important. Maybe there are weak areas in an application but if these can be explained, and any risks that these present to the lender can be mitigated, then the loan may still be approved.
The lenders themselves also specialise in different areas of commercial lending. Not all lenders take all types of property for commercial loans so, for example, if you want a loan on a franchise, property development, childcare centre, hotel, service station, etc you need to find the right lender to apply with.
This is where I can help. You can keep doing what you do best, while I do the research, put together the application for you and then liaise with the lender on your behalf. We can discuss what you want from the loan and what options best suit your circumstances. A loan should be easy to live with!
Contact me through my Enquiry Form if you have any questions, and please let me know if there are any aspects of commercial lending that you’d like me to write about.