How to Find a Commercial Lender
There are many reasons why a new or existing business might need to find a commercial lender. Perhaps you need to buy some commercial real estate for a new or expanded location, or you need to purchase some expensive piece of equipment for your start up business. Whatever the reason, finding a commercial lender is the first step in getting the loan.
Many different types of companies offer commercial mortgage funding. These include such diverse sources as commercial banks, CMBS conduit lenders, life insurance companies, and private lenders. Another source for a commercial loan is a commercial investment firm.
CMBS conduit lenders are a special kind of security investment lender. CMBS stands for commercial mortgage backed securities. The conduit lenders originate commercial mortgages, then set up asset pools from these mortgages. Shares in these pools are then sold on the open market to interested investors.
The Internet is a great place to start when trying to find a commercial lender. There are sites which will submit a single application to dozens or even hundreds of potential lenders at the same time. This saves you a significant amount of time over filing applications for each of these lenders.
You can also use the Internet to seek out individual companies that offer commercial loans. The advantage of doing this is that you can find a company offering exactly the terms you need. You can still file the application electronically for most of these companies, just like with the aggregated sites.
You might also want to visit a local branch office for a bank to see about a commercial loan. Sometimes speaking to a lender in person about your needs is more effective than dealing with everything through electronic communication. You can also sometimes get a better feel for how they will treat you as a client by speaking to a banker in person.
If you are a local business, you might have luck getting a commercial loan from a local credit union. Even if your business doesn’t meet the requirements for a commercial loan from one of the larger banking institutions, a local credit union might be willing to work with you. The credit union will know the local economic situation better than a large national corporation and might be more willing to listen to your business plan.
Before attempting to contact any Auckland corporate lender about a commercial loan, be sure your paperwork is all in order. You’ll need to have your financial records available, including an income statement, cash flow statement, balance sheet, and a retained earnings statement. The more documentation you can provide when you apply for the loan, the faster the process will be and the sooner you can get your money.
Remember that there are many options out there for finding a commercial loan. If you don’t like the terms offered by one particular lender, or you don’t think your business will be able to make the payments required by that lender, you can simply apply somewhere else. Don’t let a lender convince you that a particular set of loan terms is your only choice unless you have already spoken to a number of lenders. Do your own legwork and don’t expect a loan officer to be on your side.
Finding an Auckland corporate lender may seem daunting, especially in the midst of all of the other complications involved in running a business. However, it doesn’t have to be very hard to find the right lender for your business. There are a lot of ways to find a commercial lender, especially now that the Internet is so widespread in the financial world. You can use a website to apply with many lenders at once, or use the old-fashioned route and just go into your local bank or credit union and ask for a loan. Whatever you choose, make sure you get favourable terms on your loan and that your business can handle the payments required.