With many business loan borrowers, banks have already declined their loan application. Reason # 1: Minimum commercial real estate loan for many banks is $250,000 or more. With non-bank business lenders, the typical minimum commercial loan amount is $100,000.
Reason # 5: Most banks will require business plans for a commercial mortgage. Non-bank business lenders typically do not require business plans as part of their underwriting process for a commercial real estate loan.
Reason # 6: Most banks will require tax returns for a commercial mortgage. Non-bank business lenders do not require tax returns or any income verification for a Stated Income commercial real estate loan.
Reason # 7: Most banks will require cross collateralization of personal property for a commercial real estate loan. Non-bank business lenders do not verify income either before or after a commercial loan closes with a Stated Income Business Loan Program.
Reason # 12: Very few banks offer an assumable commercial real estate loan. Typical non-bank business lenders have an Assumable Commercial Loan Program which includes loan amounts up to $1 million.
At typical non-bank business lenders, most commercial mortgage loans close in 45 to 55 days.Non-bank business lenders use the Stated Income Approach for commercial mortgage loans in their Stated Income Business Loan Programs (most commercial mortgages up to $2-3 million qualify for these programs).