Any time you need to fund the development of a new product, you have different options for raising the required capital. Some organizations use conventional loan programs to procure the funding. Other organizations look for private investors, rather than taking on additional loans. Securing funds from private sources is a major undertaking that often requires the help of an experienced firm, like Commercial Lending Corporation.
Most companies have to rely on pooling money from multiple sources, rather than one large investor. In order to accomplish this, you require putting together a Private Placement Offering and filing the appropriate paperwork with the SEC and other government agencies. How quickly you are able to complete your filing, issue your Regulation D Offering, and solicit investors depends upon whether you are attempting this on your own, or getting assistance from Commercial Lending Corporation (CLC).
Using CLC to put together your private placement program (PPP) has its benefits. You get direct access to CLC’s underwriting team of experts, as well as their legal department. Further, CLC already has access to private investors who are willing to supply funding for a variety of projects, including new product development. CLC has hundreds of Proprietary Accredited Investors looking for good investments. In addition, the typical amount of time needed to close your PPP and raise the required capital using CLC ranges from 45 to 90 days. It should be pointed out that certain items are unable to be included in your PPP, such as appraisals, inspections, and insurance reviews. These items have to be paid for out of pocket in order to complete the underwriting of your PPP.
Operating a small hotel or motel involves being able to compete with the larger chains. You have to be willing to provide similar amenities and accommodations to your guests, just like the larger hotels in your area. Not being able to offer these options often has a direct impact on your occupancy rates. In order to keep your rooms booked and occupancy rates high, you may need to consider remodeling your hotel or motel. Securing the financing required to undertake such a project is possible with assistance from Commercial Lending Corporation.
This A+ rated Better Business Bureau lender has solutions available to fit with your specific needs and requirements. Commercial Lending Corporation (CLC) has direct access to one of the largest pools of money available on the market today. By working directly with CLC, it is like presenting your rehabilitation project to hundreds of lenders all at the same time. Their experienced underwriters are able to quickly determine which programs would best suit your situation. Instead of having to apply for each program individually, you can submit a single application, along with the required documentation, and have it presented to all interested lenders.
As a result, it is possible for you to end up with multiple rehabilitation loan offers from different parties. Whenever this occurs, your CLC underwriter will discuss each loan program, its features, and help you discover the one that provides the best benefits. For example, you might be able to obtain a higher loan-to-value ratio with one program, while another has a lower interest rate.
You are able to find loan solutions for your bank customers with help from Commercial Lending Corporation (CLC). With today’s financial markets, it can be difficult to tell a customer, who has been doing business with your bank for a long time, that you are unable to approve their commercial loan. Any time you deny a loan request from a customer, you run the risk of losing their business to one of your competitors. Rather than turning your customers down, you are able to turn your bank into a solution provider and offer more lending options.
The benefits of Commercial Lending Corporation’s solutions for your bank customers gives you the flexibility to decide what loans you want to underwrite, and others you want to refer to CLC for assistance in getting approved. Rather than just denying a loan, you are able to offer your customer other viable options. As a result, you are able to maintain your preexisting relationships with your customers and reduce the risks of losing their business to your competitors. Further, you have the ability to increase your potential revenues and profits by utilizing referral or mortgage broker relationships directly with CLC.
The reason CLC is able to approve and underwrite commercial loans, when you do not want to, is due to their extensive network of financial partners. CLC provides a non-competitive solution for your bank by allowing you to outsource your customer’s commercial lending needs. In addition, they have direct access to private placement programs for your customers who are seeking private investing solutions.
Making sense of the wide variety of commercial loan programs available on the market today can seem overwhelming. Not only are conventional programs available, but a wide range of small business programs, private placement programs, bridge loans, FHA-HUD and FNMA programs, equity loans, and more exist to muddy the waters. Determining the best programs to fit your projects is important. Often there are slight variations, from one program to the next. Fully understanding what these are could be the difference of paying a smaller down payment, securing a lower interest rate, and requiring less money at closing.
Luckily, you are able to obtain help directly from Commercial Lending Corporation (CLC) for your commercial lending needs. CLC has access to one of the largest pools of commercial money available in the nation. Further, their experienced underwriters and loan consultants know exactly what sources are currently available for any type of commercial program. Additionally, discussing your financing needs with one of CLC’s loan consultants or underwriters allows them to quickly size up your needs and recommend the programs that benefit your business the most.
Talking to Commercial Lending Corporation about your financing needs is like speaking to hundreds of lenders at once. With underwriters who have an average of 30 plus years of experience, as well as being a past net branch of a federal savings bank, CLC has been known to succeed where others have been unable to provide the necessary financing. In fact, CLC has one of the highest loan closing ratios, compared to single product lenders, and the lowest rates possible.
When looking at your available financing options with commercial loan programs, one thing you need to evaluate is whether the interest rate is fixed or adjustable. Fixed interest rate programs are often preferred, over adjustable ones, because they lock in the rate over the entire length of the loan. However, you do have to keep an eye on current market interest rates on fixed loan programs, as they do drop. In the event the rate drops, it is worthwhile to consider refinancing your current fixed rate loan with a new one through Commercial Lending Corporation.
With an adjustable rate commercial loan program, your interest rate is often fixed for a short period of time, ranging from 2 to 5 years. After this period, your interest rate can be adjusted based upon the current market rates, plus a specified percentage amount. For example, you are at the end of your fixed period, and the current market rate is 5 percent. When you first obtained your loan, the current market rate was 4 percent, and your specified percentage amount was also 4 percent, meaning your initial fixed rate was 8 percent. Now, because you are entering the adjustable rate period of your loan, your interest rate may be increased to 9 percent, based upon the current market conditions.
However, obtaining an adjustable rate loan from Commercial Lending Corporation can be beneficial in certain circumstances. For instance, if you are a higher risk due to a lack of, or poor, commercial credit and are not able to qualify for a fixed rate program, you still could quality for an adjustable rate program. Most programs contain a clause where you are able to refinance the loan after a set period of time without any penalties. This allows you time to establish or repair your credit so when you are able to refinance, you are able to secure a fixed rate program.
Some types of commercial real estate loans are not fully amortized over the life of the loan. Rather, there is a single large payment due at the end of the loan period, which is commonly referred to as a balloon payment. However, there are advantages to using this kind of loan program from Commercial Lending Corporation. For example, if you secure a 5 year fixed interest rate balloon mortgage with a 30 year amortization schedule, your monthly payments over the course of the loan period are based on the 30 year amortization schedule. If you required financing for $1 million, your monthly payments with a 5 percent fixed interest rate balloon loan would be approximately around $5,400, compared to around $18,900 for a conventional 5 year loan with a 5 percent fixed interest rate.
Because you are able to obtain lower monthly payments with a balloon loan program for a shorter period of time, it allows you to make financing investments into a variety of commercial property projects. For instance, if you are purchasing an older office building and plan to rehabilitate and modernize the facility, you may have plans to sell the property once the project is finalized. In this situation, a balloon program from Commercial Lending Corporation would be an ideal form of financing, as it gives you the time you need to complete your project and sell the property. In the event you are unable to find a suitable buyer and are approaching the end of your loan period, you are always able to roll your final balloon payment into a new loan.
When you are looking for a short term solution for obtaining financing on commercial real estate, you could consider a bridge loan through Commercial Lending Corporation. A bridge loan is a special type of program used for a variety of reasons. Because it is a short term solution, the kinds of documentation normally required for conventional programs are not always required. Further, this program is able to be used to close quickly on the property. For example, you might have found an attractive sale price on a building in your area and want to purchase it before another interested party buys it out from under you.
Another reason you could require a bridge loan from Commercial Lending Corporation is in times when you are restructuring your debt and want to avoid foreclosure. Since refinancing through a conventional program can take time, using a bridge loan helps get you the funds you need, now, to catch up your past due payments. It is important to remember you are responsible for making monthly payments with a bridge loan, just like other types of loan programs.
Bridge loans are only short term solutions designed to provide you with quick results. After obtaining a bridge loan, you have a set period of time to find a long term solution. The amount of time you have to secure conventional long term financing depends upon how your bridge loan was underwritten. Typically, this period can range from as little as a few weeks, up to three years.