Searching for a Commercial Lender?

Business owners must beware when searching for a commercial lender. You must guard your trust when working with business lending sources. The same regulations that protect you as a consumer are not present for business/commercial loan transactions. It is a buyer beware market. Here are a few tips to help you in your journey.

  1. If the deal sounds too good to be true, it probably is. Most of the people you will speak with about a loan are sales guys. Take the roses they give you with a grain of salt.
  2. Watch out for significant up front fees. Many fraud business lenders will ask for excessive packaging fees to work on your loan. Sometimes they will call it a due diligence fee. It is customary to put a deposit down once you receive a “Commitment Letter.”
  3. Verify recent transactions and ask for references. Some fraud lenders talk a really good game but can’t prove any recent results.
  4. Make sure you verify the business exists with public records and other third party sources. Depending on the lender or consultant this may be difficult. Don’t skip this step lightly.

Obviously for some lenders this due diligence would be pointless due to the national brand or local community brand of the bank, credit union or business lender. Just take caution knowing this industry is a buyer beware market. We are constantly searching for new lenders and run across many talkers and fee shops rather than commercial lenders.

It is not always easy to catch the bad lenders. Trusted sources are critical to our business and to your loan success. We look forward to helping you find a safe home for your commercial loan.

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