Where to Find Commercial Loans When the Bank Says No

If you recently applied for a bank loan and received a rejection, you may feel discouraged. But when it comes to commercial loans, your search doesn’t have to stop when your bank says no. The resources available to you are limitless and depending on your personal needs, you can find the right loan for your real estate or company’s situation. Check out these options to find a safe and reliable source for your next business loan.

Commercial Private Lenders

Commercial finance companies tend to offer riskier commercial loans than banks do because they’re not subject to the same federal regulations. If you’re in need for a loan and have collateral to offer, you might find a commercial financier the ideal option for you. Because of the greater risk that these companies take, however, commercial hard money tends to have higher interest rates than institutional banks.

Mezzanine/Bridge Loans

Mezzanine loans are similar to commercial loans but designed to be a bridge loan for a larger take out and usually are a short term option.  Mezzanine loans are an excellent option to acquire or break ground on a project. These loans are typically secured by real estate but can be unsecured for established businesses. Mezzanine bridge loans do tend to be at a higher closing costs and interest rates.

Life Insurance Companies

Life insurance loans are some of the safest alternatives for borrowing money. In some ways, it’s like borrowing money from yourself. If you have a life insurance policy, you may be able to withdraw money from it and pay the balance over time at a reasonable rate.

Even if you aren’t able to pay the money back, you may still qualify to take money from your policy. In the event of your death, the amount you withdrew will simply be deducted from the overall balance. Why not put your life insurance to good use and take out a safe, easy-to-repay loan from yourself?

Retirement Accounts

If you don’t have life insurance, withdrawing money from a retirement account another safe option. 401(k) accounts usually have a cash value that you can either withdraw for yourself or use as collateral for security-backed lending. Typically, these loans are flexible and can be repaid over a long period of time. If you have an IRA account, like the SEP or SIMPLE plans, you may qualify for a similar opportunity but with stricter limitations.

In some cases, you may also invest your retirement account into a real estate purchase and or company. To qualify for this option, you typically have to fill out several forms with the help of a financial planner. Contact your financial planner to determine whether you and your company meet the requirements set by your retirement plan.


Stock Accounts

If you have a stock account, you might be able to find a brokerage willing to offer you a “margin loan.” By withdrawing a margin loan, you’re borrowing money against the value of your stocks. Depending on your stocks and your financial necessity, this can be a valuable and risk-free loan option. The downside to this option is that stock account loans tend to offer less flexibility.

Angel Investors

Angel investors are wealthy individuals who are willing to provide loan money for startups and entrepreneurs. Angel investors are accredited investors with a net worth of over $1 Million. Generally, angel investments are offered at a high return or investment in comparison to other options. If your angel investor is a business owner themselves, they may also offer a merger & acquisitions deal in which your company is transferred or combines to their own. Because most of these investors register themselves within the Angel Capital Association, the best way to find one in your area is by searching the ACA directory.

Local Investors

Local investors are like angel investors but somewhat more opportunistic. Usually, local investors are more well-known within the community and can offer higher loans to businesses they think will be successful. This also means that less casual investor loans are available and that, if you want one, you must prove to the investor that your business is likely to thrive. Not every Real Estate and Businesses is able to qualify depending on the local investors capital constraints and appetite for risk.

If you need any type of commercial, residential, or business loan nationally or abroad, you have plenty of options besides the bank and we would love to show you. We are here to tell you that there is a solution for you.

Whether you’re looking for an institutional bank loan, private loan, bridge loan, commercial hard money loans, we look forward to speaking with you. We make sure you receive the capital you need to succeed.  We don’t provide denials only solutions. Call us today to have a free consultation. No dreams deferred, we are “AS IS” Loans.