The number of applications you submit for commercial loans can have a direct impact on your business’s credit score. The more inquiries made against your credit file, the more it raises questions from potential lenders about whether you were ever before approved credit. As a result, your score starts to decline, due to excessive inquiries. Further, it becomes even more difficult to obtain a commercial loan from a single source lender. Because you submitted numerous applications to multiple lenders, your credit score declined, and each of your applications ended up being denied. However, do not stress, as there is still another lender you should consider to help you obtain financing for your business.
Commercial Lending Corporation (CLC) has access to the largest number of financial partners, institutions, programs, and private sources of money for commercial loans in the nation. This lender has some of the lowest rates possible, with one of the highest closing ratios, compared to single source lenders. Further, by contacting CLC and discussing your financial needs, it is like presenting your project to hundreds of lenders at the same time. Because of CLC’s extensive relationships, they are able to help place your needs with an interested lender.
Commercial Lending Corporation has helped companies secure financing when they were previously denied by their own bank or credit union. For example, one recently closed loan was for a retail shopping center looking to refinance in order to satisfy past due obligations and payoff taxes. Other lenders denied the loan, because of past due taxes. However, CLC was able to find an interested private investor and help this customer complete the refinance of their shopping center.
A private placement program (PPP) is a special type of financing program offered by Commercial Lending Corporation and made available to businesses of all sizes. You do not have to be a large multi-national firm to apply for a PPP. Both small mom and pop operations and medium companies are also able to apply for a PPP. This kind of commercial loan is designed to help a business operation raise capital and cash through private sources by soliciting interested investors.
Some people get a PPP confused with selling stock on the open markets. While you do have to put together and prepare a Regulation D Offering and submit the appropriate paperwork to the SEC and other government agencies, you are not selling stock on the open market. Rather, you are providing a percentage interest in your company as collateral in return for the amount of money the private investors want to lend you. Your company remains private. You retain full ownership of the operation and continue to run it as you have, without any input or interference from your investors.
There can be different ways to satisfy the terms and conditions of a PPP obtained through Commercial Lending Corporation (CLC). Some of your investors may want you to make regular monthly payments until they are fully paid back. Others might prefer one large, lump sum payment, along with interest at the end of a specific period of time. CLC will let you know exactly what type of repayment your investors require, so that you do not default on your obligations.
Any time you are presented with multiple loan offers from Commercial Lending Corporation, you have to evaluate each one. While your experienced loan consultant will cover the differences between each program, it is still your decision to determine which loan you want to obtain. By taking the time to become a little more knowledgeable about certain loan terms, you are able to make more informed decisions.
The first thing you need to look at is the loan to value ratio (LTV) offered with the program. If you are looking to raise a large amount of money, with very little out-of-pocket costs, programs with higher LTVs are more ideal. The next item you should look at is the interest rate, and whether it is fixed or adjustable. The higher the interest rate, the more money you end up paying back to the lender over the course of the loan. Fixed rates are always preferred, over adjustable rates. Adjustable rate loans may include a fixed rate period, but once they end, your payments could increase on a regular basis and make it more difficult to meet your monthly commitment.
Another thing to look at in any loan offers received through Commercial Lending Corporation is the type of loan. Some lenders underwrite recourse loans, while others provide non-recourse loans. These terms have to do with the amount of liability you have to the lender in the event you default on the loan. Non-recourse loans limit the lender to only seek the assets used as collateral to obtain the loan, while recourse programs give the lender access to go after other assets of the company to fully satisfy your loan obligation.
You can find both conventional and private placement programs (PPP) available from Commercial Lending Corporation (CLC). These programs are able to be used for new purchases, new construction, refinancing, rehabilitation, lease purchases, and other commercial ventures. Because CLC has access to one of the largest pools of financing resources for commercial loans in the nation, you are not limited to only a few commercial programs. Instead, you have many more options in order to select the best program to fit with your business needs and requirements.
When you first contact Commercial Lending Corporation, you talk to one of their experienced loan consultants who have knowledge of all of the current programs and sources. Discussing your project with them is similar to presenting it to hundreds of lenders all at the same time. Your consultant is able to quickly verify your lending needs and recommend the solutions and programs that would be the most beneficial. Further, instead of having to fill out hundreds of loan applications and apply to each lender on your own, you only have to complete and submit a single application to CLC.
Once your application has been submitted, your loan consultant presents it to as many interested lenders, private investors, banks, and other financial partners and institutions as possible. Often you end up receiving more than one loan proposal from different parties. Whenever this occurs, your consultant will review each loan, go over the features and options, and help you select the one with the most favorable terms and conditions.
The terms used to underwrite your loan from Commercial Lending Corporation might seem confusing to some people. As with any loan program, it is worth your time to read through the loan contract to ensure you fully understand the terms and conditions. You should also review the repayment terms, interest rate, and other details to verify you are aware of your financial obligation. Fortunately, CLC and their team of experienced underwriters are there for you throughout the entire process. At any point, if you have questions, concerns, or other items you are unclear about, you are able to get answers directly from your loan consultant or underwriter.
One item you may have further questions about is how a fixed rate loan with a balloon payment works. Many people automatically assume they have to make a single large payment at the end of the loan contract to pay it off. Typically, this is not an issue, as the loan is used as a short term solution, like for a new construction project or a new product launch. However, sometimes things do not always go as planned, and you might not have enough funds to fully satisfy your final payment. What you may not realize is there can be other options available. For example, with a 5 year fixed balloon loan, you make payments over the course of the five years. Once you reach the final payment, you could be able to refinance the remaining balance into a longer term fixed rate conventional loan program with Commercial Lending Corporation.
It is worth your time to explore your options with a Private Placement Program (PPP) from Commercial Lending Corporation whenever you are looking to raise a large amount of capital. A PPP can be used for a variety of reasons, including simple deals for seed capital to open a new business, to multi-million dollar raises for high growth companies, as well as real estate transactions. A PPP provides a practical option of raising capital from private sources, which is in compliance with federal, state and SEC regulations. It is important for you to understand the rules that apply to companies raising capital using a PPP. If you sell securities improperly to investors or fail to make the proper filings, you run the risk of facing a rescission issue with your investors.
The reason your need an offering is because most private lenders typically invest between $10,000 and $250,000. While there are super-wealthy investors out there, obtaining the funding for a PPP from these few is much more difficult than soliciting investments from small to mid-level investors. As a result, most private companies are able to raise the necessary capital by pooling together investments from a multitude of private sources, rather than a few large ones.
Filing and completing your PPP through Commercial Lending Corporation gives you direct access to hundreds of interested investors. In fact, CLC will even present your offering directly to their pool of accredited investors for them to review. If they
Any time you are seeking a commercial loan from Commercial Lending Corporation, you have to understand how loans are approved. One of the most important aspects to obtaining financing has to do with the loan-to-value ratio based upon the appraised value of secured collateral. Many lenders prefer providing funds when they know their interests are protected. In the unfortunate event of a default, the lender has the ability to use the collateral in order to satisfy the remaining balance on the loan. Even with Private Placement Programs, your investors have a stake in your company which can be sold should you default.
There are different methods used to calculate the loan-to-value ratio amounts that are influenced by the type of loan you obtain from Commercial Lending Corporation. For example, a non-recourse loan typically has a lower loan-to-value ratio than a recourse loan. This is due to the fact the lender has different recovery options when defaults occur. With a non-recourse loan, the lender is only able to seize and sell the collateral, while the business’s other assets cannot be touched. On the other hand, a recourse loan gives the lender the ability to not only seize and sell the collateral, but also take legal measures to secure additional assets of the business operation, until the debt has been fully recovered.
Another determining factor used to approve your loan is your creditworthiness. If you have a lower credit score, you may still be able to be approved. However, because you could be viewed as a higher risk to lenders, you often end up paying a higher interest rate on the loan proceeds.