Commercial lending is a complex and often confusing process, making it difficult for business owners to get the financing they need. As a result, many businesses are needlessly discouraged from pursuing financing that could be vital to their success. Unfortunately, this complexity also raises several myths and misconceptions about commercial lending. Here are three of the most pervasive myths about commercial lending:
1. Commercial Lenders are All The Same
Commercial lenders are not all the same. In reality, there are many different types of commercial lenders, each with its strengths and weaknesses. Some commercial lenders focus on providing loans to small businesses, while others focus on larger projects. For example, banks offer lower interest rates but may require more collateral. Credit unions may be more flexible in their lending criteria but may not have as much money to lend. Some lenders specialize in specific industries, such as healthcare or real estate.
Each lender has its own guidelines, minimums, and processes. Working with established professionals like Blake Mortgage is essential as they understand the ins and outs of commercial lending to match you with the right lender for your needs. They have access to various lenders and programs and know which will work best for your particular situation. They’ll save you time and hassle by handling the paperwork and legwork involved in applying for a loan.
2. Commercial Lending is Only for Big Businesses
Another common myth is that commercial lending is only for big businesses. Commercial lenders provide financing for a wide range of businesses, from start-ups to established enterprises. Commercial lending can allow you to expand operations or purchase new equipment.
Tons of commercial lenders specialize in providing financing for small businesses. While big businesses may have an easier time qualifying for a loan, small businesses can also get the financing they need to grow and thrive. So, if you are a small business owner looking for a loan, don’t be discouraged – there are plenty of options. Just do your research and work with a lender who is experienced in serving the needs of small businesses.
3. Complicated And Time-Consuming Process
Commercial lending is often considered a complicated and time-consuming process, but that doesn’t have to be the case. Working with professionals can help streamline the process and get you approved quickly. The first step is to help you find a lender like Blake Mortgage, who specializes in commercial loans and has experience with your type of business.
Then, you’ll need to gather all the required documentation, including financial statements and tax returns. Once you have everything in order, the approval process should take no more than a few weeks. And with today’s technology, the application and approval process is faster than ever. So don’t let the myth of complicated commercial loans hold you back.
The Best Commercial Mortgage Broker in Phoenix
Commercial lending is not as challenging to obtain as many people think. While it is true that the process can be more involved than personal lending, the myths about commercial lending make it seem much harder to obtain than it is. blakemortgage.com is a commercial mortgage broker in Phoenix that can help you navigate the process and get the financing you need to grow your business.