Private lenders have been part of the American commercial landscape for a long time, especially in real estate. In the last 20 years, private personal loans have become an increasing part of the American financial industry, with loan products available for home loans as well as consolidation and personal loans. With the lending industry now led by private commercial property loans and real estate loans, the new environment is increasingly independent of banks and banking regulations. Some amazing opportunities are now available to become a homeowner or buy your own business.
Easier Credit Requirements
Online lenders generally have easier requirements to take out a personal loan. For borrowers repairing their credit, these easier requirements for private commercial property loans can improve their prospects of opening a business. While costs for a private loan can be somewhat higher than a bank loan, they still will likely be lower than rent on a comparably sized building. Private lenders can also often take different characteristics into account and offer loans based on different criteria than only credit scores.
Easier to Compare Side By Side
Private commercial property loans are published on many websites like NerdWallet and CreditKarma. This makes it easy to compare products directly with each other. When you can directly compare commercial lending products, it makes it much easier to get the best deal for your home or business, including closing costs and improvements.
Because banks have to follow the procedures that are prescribed to them by state and federal regulators for every loan they issue, they can take a longer time to go from initiation to approval than a private lender. Private lenders are operated by their investors. They operate by rules that are completely internally set and are not subject to regulatory capture. Private lenders can often approve your loan and transfer the money to you within days or even hours of initiation.
No In-Person Requirement
Banks operate on traditional banking regulatory requirements. These regulations require a slower lending turnaround. They also require banks to require in-person visits to perform certain parts of lending, including the actual signature of the loan. This creates a banking quasi-monopoly that private lenders are breaking.
Private lenders have gone from being a pariah in the lending world to one of its superstars. Private commercial property loans help new businesspeople build their dreams into a reality. According to TransUnion, 22 million Americans owe a collective $210 billion in personal loans. Don’t take out a loan you can’t pay back. Come see West Coast Commercial Capital LLC and find your reality today.