Tag Archives: commercial loans

How Short Term Commercial Loans Can Help Your Business Dreams Come True

Can you really take your business to the next level? You can with the help of commercial loans to help you finance the next phase of your company, and Level 4 Funding explains how.

If you need cash fast to put a down payment on a property for a new location, for example, short-term commercial loans are the perfect option. Unlike conventional bank loans that typically have five- to ten-year terms, short-terms are defined by shorter repayment schedules that are designed to be paid off in between three months to three years. Usually these loans have higher approval rates than long-term loans, and can be paid in smaller daily or weekly payments versus a monthly lump sum. Ensure you can manage the daily or weekly payments prior to agreeing on the terms of this loan.

Short-term commercial loans are great for businesses because they are typically approved a lot quicker, which means you get cash in hand quicker in comparison to a conventional lender application and approval process. New businesses can get approved for these loans, which can actually make it easier for them to get approval for long-term or more traditional loans in the future. Prior loans — and proof of paying them off — give lenders peace of mind that you can pay off a loan.

Short-terms are also easier for new businesses to get approval or for companies that haven’t yet established a business credit history. Once credit history is established with a short-term loan that is another way to help future loan approvals from traditional banks. Usually lenders specializing in shot-term loans do not require a minimum on credit score as conventional lenders typically do, especially for long-term loans.

One of the best benefits of short-term commercial loans is that their approval time is fast – which means you can get your funding fast.

With these loans, businesses can receive their cash advance in just 24 hours, give or take. This is important for many reasons as a company is looking to expand, but it can also be just the thing a business needs if they are cash-tight and need to handle payroll or pay their vendors. Fast cash is one of the reasons short terms are so desirable for new and expanding businesses that are having growing pains or “tight” times.

It’s important to know that while there are many benefits to short terms, there are some disadvantages to be aware of, too.

While these short terms are very helpful to businesses, there are some drawbacks. For example, the annual percentage rate tends to be much higher with loans like this than the APR of conventional loans because the amount of time the loanee has to pay back the loan amount is much shorter. While there are very short reschedule periods of three to six months, it might be more reasonable to negotiate a (relatively) longer payment schedule up to three years. There are also lender fees and other costs that may be associated with short terms so it’s important to know what those are before you proceed.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Cyber Threats Are A Real Danger For Commercial Lenders

level 4 funding teamJust like a job application, it is only natural that you may want only to tell your commercial lender what you think they want to hear, but proper and honest communication can go a long way towards making the relationship a good one.

It sounds like such an easy thing, yet it is one of the most common reasons problems arise in so many aspects of our lives—communication. More often than not, if we just talked about something, answered a question honestly, or responded in a prompt manner, we could avoid all kinds of unpleasantness.

In many cases, proper communication can get a relationship off on the right track and make it even better than you thought it was. For example, communication is a vital part of getting a commercial lender to approve a loan.

So—what do you need to do to make sure you communicate whatever needs to be delivered to your lender?

We Could Have Done Something, Had We Known

If you have ever gotten so behind on a bill that the company was calling your house daily to ask you about it, then you have probably heard someone tell you, “If we only knew…” If you had only told them a number of days ago why you couldn’t pay the bill, something could have been worked out—but not now.

We may not want to talk to them or be completely honest, but often if we just communicate, problems don’t have to be as harsh as we think they are. So, when it comes to working with a commercial lender, keep these four things in mind:

– Talk To Your Lender: Get to know who your lender is before engaging the loan approval process. Get to know their strengths and weaknesses, what sort of loans they like to approve, and how much experience they have with what you want their money for. Go with someone that understands you better, and it will be easier to work with them.

– Respond to questions, queries, and requests in a prompt fashion. Chances are they are asking whatever it is for a good reason so the sooner they know your answer, the better. That way, if a problem arises, it can be dealt with.

– Communication is a two-way street. The commercial lender needs to be as upfront as possible with the borrower and address whatever concerns they may have. Failure to do will foster an environment of distrust and make doing business more challenging than it needs to be.

– Be honest. There is no reason to sugar coat, talk down, or fabricate information about anything. If you do, chances are when the truth asserts itself—and it always will—the consequences will be much more dire than they would have been.

It Can Only Help

Being honest about things is not always easy. We hate to put a bad foot forward in any regard. That’s why people lie on their resumes and leave facts out in their loan applications. But just like in the workplace, the truth will eventually come out with your commercial lender. When it does, the consequences will likely make you wonder why you ever thought proper communication was a bad idea.

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


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