I recently spoke with a borrower who was trying to buy a business.
Good credit.
Solid W2 income.
Money to put into the deal.
But the bank still declined it.
Why?
It didn’t fit the bank’s credit box. They don’t lend on start-ups or borrowers with visa status.
This is where I see deals fall apart all the time. The borrower did nothing wrong, but the structure doesn’t work for a traditional bank or SBA lender.
That does not mean the deal is dead.
We walked through the scenario and looked at options outside of the bank box. There are lenders that will look at the full picture and not just check a few boxes.
Here is one of the programs that can work in these situations:
Loan amounts from $250,000 to $500,000
Terms of 3, 5, or 7 years with monthly payments
Minimum credit score of 680
Minimum W2 income of $50,000
Start-ups are allowed
Green card holders are allowed
Visa holders are allowed with at least 2 years remaining
This is not a fit for every deal. But when it fits, it solves a real problem.
If you or you have a borrower that received a bank decline but the deal still makes sense, call me at 512-358-1511 and we can walk through it.
No obligation. Just a conversation or get started by filling out this form!
Karen Schimpf
Commercial Loan Advisor
512-358-1511
karen@applycommercialloans.com
www.ApplyCommercialLoans.com
P.S. We are also seeing a lot of activity in residential investment and small apartment fix and flip deals. These typically start around 70% loan to value. If you do not have a lot of experience, a seller carry of up to 20% can help bridge the gap going up to 90% CLTV. For experienced flippers with good liquidity, financing can go up to 100% of the project. The more experience you have and the stronger your liquidity, the higher the leverage options. If you have a deal you are working on, call me at 512-358-1511 and we can structure it.