If you are a small business owner, to further your company’s ambitions, you need a business loan. There are several good reasons not to turn to a conventional bank when it comes to a company loan or commercial real estate loan. The key reason most small enterprises are searching for alternative sources of commercial real estate loans is that banks have rejected them. Small enterprises are also forced to search for other sources of financing because they won’t be given by the banks. This is not even mentioned below, as non-bank funding is favored for several positive reasons.
Here are some of the most important reasons:
1. Too high
In many cases, banks will not offer a commercial real estate loan for less than $250,000. So if you only need $100,000 you will be pushed to borrow more than you need. Or if your property will not support a $250,000 loan you are out of luck with the banks.
The solution is to look for an alternative funding source that can provide a lower minimum amount. Some commercial financing services will go as low as $100,000, and will often give you better terms and much better service than the traditional banks.