How to Avoid Delays in Securing a Commercial Loan
The old saying about ‘time is money’ is nowhere more true than in the commercial real estate industry, where securing needed financing can cost a real estate developer a fortune, and in extreme cases, might even bankrupt a company. There are any number of reasons why a traditional lender might delay a real estate transaction from being finalized, but even if there are no major issues holding up progress, commercial real estate funding can be agonizingly slow.
Here are some ways to avoid delays in securing your commercial loan.
Take preventive measures
Before even applying for a commercial loan, it’s a good idea to do some research on your own to make sure that any obvious snags won’t hold things up. In the case of a real estate loan, make sure that the property has no environmental issues, because these tend to be thorny problems that can take months or even years to resolve.
It’s always worthwhile conducting a thorough title search on a property to make sure that it’s legally free and clear, and that there are no other parties which might have a potential claim on the property. If you overlook this step, you might find that previously unidentified parties have some legitimate claim through partnership or some other interest, and this can result in never-ending legal hassles.
After you’ve checked out all the obvious potential hangups, you’d still be smart to factor in a considerable amount of extra time for your anticipated real estate development planning, so that you don’t run into time constraints that might financially ruin you.
The best way to speed up the process
To avoid all the possible snags associated with applying for a commercial loan, and to avoid the inevitable paperwork slowdown from traditional lenders, your best bet would be to apply for a loan through an alternative lender. Because alternative lenders are not subject to the same endless regulations which traditional lenders are, they can be much more agile in financing a real estate project, and keeping things moving. An alternative lender might handle your application in mere days, as opposed to weeks, months, or even longer – and all that time you save will be money in your pocket.
For more information on securing funding your next commercial real estate venture contact Bull Market Capital: Business Funding Solutions.