Five Reasons Not To Use A Traditional Bank
If you are small business owner and you needs a business loan for growing your business.when it comes to a business loan there are many reason not to turn to a traditional bank.
REASON 1 -
Banks usually think they are doing you a favor by processing your application, so they will often make YOU pay for their attempts to win your business.
The solution is to find other established and credible lenders who are eager to offer you better service without charging you a fee for processing your application.
REASON 2 -
Banks usually have very narrow rules about where you can use the cash derived from a commercial real estate loan. If you need a cash injection for your business, or want to use the proceeds from a commercial mortgage as a down payment for another property, most banks will not be interested in that type of loan.
Look for a lender who does not restrict your use of the cash derived from commercial real estate loans. Some services can provide commercial loans that give you up to 1 million in cash to use however you want.
REASON 3 -
Many small businesses have business plans, but they are usually not sufficiently detailed to satisfy the banks. As a result, applying for a commercial real estate loan from a bank can turn into a very time consuming and expensive process. Creating the type of business plan that is adequate for the banks will usually cost thousands of dollars.
Find a lender who does not require business plans as part of their underwriting process for a commercial loan.
REASON 4 -
If you are either unable or unwilling to provide tax returns for your business, many banks will not give you a commercial real estate loan.
REASON 5 -
Even though there is sufficient collateral in your business property to secure a commercial real estate loan, many banks will require you to provide additional security by putting up personal assets. Business people have become so used to banks doing this that they just assume it is a necessity.