Need Money? Where to Go if the Bank Turns You DownPosted 3/12/2006
By Christopher Perez
Need cash to purchase commercial property, expand facilities or buy more equipment? If so, you've probably been to the bank and may have already been turned down. In the automotive service industry, some business owners may not have the financial paperwork necessary to stand up to the bank's rigid underwriting requirements. If that's your situation, you're not alone. It's not that banks don't want your business. They simply aren't able to take on the risks associated with automotive-related properties. As a result, many banks decline more mortgage applications than they accept.
What's the alternative? Good news - there are a variety of nontraditional lenders that make loans that require far less paperwork and hassle. Many do not require tax returns, W-2s or ongoing audits of your personal and business financial information. In fact, some commercial loan programs offer fully amortized loans, so there's no need to worry about having to seek alternative financing when a balloon payment comes due. In addition, now costly Phase 1 and Phase 2 environmental reports are becoming a thing of the past as many lenders opt for less invasive and far less costly environmental reviews.
So, if you're in a growth-oriented mode, why not take advantage of this opportunity and seek the assistance of a mortgage broker? You'll be pleasantly surprised. Most mortgage professionals have access to nontraditional options in their stable of commercial lenders. When choosing a mortgage broker, select one that is willing to listen to your situation and then match your needs with the right lender. If you're not aware of any commercial mortgage brokers, many residential brokers also offer commercial financing as part of their product line. So, what are you waiting for? A more profitable future could be just a phone call away.
All ASA members are eligible to join ASA's Federal Credit Union (ASAFCU). The ASAFCU offers personal and business loans. For more information, call(800) 272-2220 or visit www.asafcu.org.
This article was submitted by Trade Press Services. Christopher Perez is the director of Commercial Loan Consultants, a national commercial loan placement firm based in Warminster, Pa. He can be contacted at firstname.lastname@example.org or at (877) 389-2570.
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