Have you decided to buy anew commercial property for your business or expand your existing business facility? If yes, have you been turned down by your bank due to a bad credit score when you applying for a commercial real estate loan? If yes, then this guide will help you learn how to get business funding with bad credit.        


Apply for Small Balance Commercial Real Estate Loans

A small balance commercial real estate loan refers to the type of loan that you can apply for any kind of commercial property. Unlike higher balance commercial real estate loans, a small balance commercial real estate loan doesn’t have rigorous under writing requirements, which makes the process of getting a loan relatively easier.

You can easily close a small commercial real estate loan from a non-bank lending organization. These lenders offer a wide range of business loan products and with a high level of flexibility than a traditional bank.

We understand that many times small and medium businesses need small balance commercial mortgage loans that usually range between $250,000 and $5,000,000; however, big banks often overlook small loans and have strict underwriting requirements for loans above$1.5 million. Another reason why many banks deny commercial mortgage loans is the bad credit scores.

Sometimes, small balance commercial loans are (informally) called story loans mainly because each borrower has a story behind why they couldn’t get financing from banks and other lenders.

The good news is that you can still get the needed fund from a reputable non-bank commercial lending provider that offers lucrative programs for small balance commercial real estate loans.


Contacting a Non-Bank Loan Provider for Commercial Real Estate Loan

It is important to know which lender you should consider because it might dictate how you will repay your loan – in distress or comfortably. First of all, you should look for a lender that uses a streamlined approach to approve to provide small balance commercial real estate loans. The lender should be highly reputable and has a good standing among its previous customers.

Once you find a good commercial lender, you will enjoy the following benefits to get a small balance commercial real estate loan:

Get Funds in Your Hands Quickly

Yes, you will be amazed at how speedy the loan approval process is in most cases. Non-bank lenders have an expedited process of underwriting, which can result in getting funds within as little as days. If you need money fast to buy real estate property for commercial purposes, a small balance commercial real estate loan from anon-bank lender is your best choice.


Fewer Collateral Requirements

Most non-bank loans follow different underwriting standards when compared to traditional bank loans. They don’t have higher collateral requirements to approve your small balance loan for commercial property. With alternative lenders, you might need to undergo a credit check and only provide current rent roll and related documents if you have income-producing properties.                                                    

So, getting small balance commercial real estate loans is much easier than you might have imagined. All you need to know is who you should choose as your alternative lender.

Reach out to us and we can discuss in detail how small balance commercial loans might be the best choice for your business growth plans.