ALTERNATIVE COMMERCIAL FINANCING

Most investors seeking funding for commercial properties know of only once source of financing – the local bank.  While there are advantages of obtaining financing through a local bank, investors are overlooking a valuable source of funding for their commercial projects.  These other sources are sometimes referred to as, “alternative financing” or “non-conventional” lenders.

Alternative funding sources do not have the stringent funding guidelines that traditional banks do, so there underwriting criteria are usually more relaxed than conventional lenders.  Other advantages of alternative funding sources include competitive rates and terms, speed of funding (25 days to 45 days, as opposed to 30 to 90 days), and broader array of loan products and property types they will fund compared to conventional lenders.