The Best Alternative to Alternative Financing
What can business owners do if they get turned down for a traditional real estate loan? Some owners turn to online hard-money lenders in search of capital. However, this can lead to expensive interest rates and the potential loss of business assets. At Meridian Commercial Lending, we offer a variety of safe, secure and trustworthy financing options that can provide the capital you need for real estate transactions. One of the most popular options is a stated income commercial real estate loan.
What Stated Income Commercial Real Estate Financing Is
On the surface, stated income loans work similarly to conventional term loans. They lend you capital to purchase a piece of property and have monthly payments you need to make over a long period of time. The difference with this type of loan is how risk is assessed. Rather than requiring you to use your own business assets as collateral, stated income financing sets the property you want to buy as collateral instead. This allows for lower interest rates and fewer credit score requirements.
How To Choose the Right Commercial Real Estate Financing
There are several advantages of stated income commercial real estate financing compared to hard-money loans:
- Lower interest rates
- No collateral required
- Capital for purchasing, remodeling and refinancing
- Significant loan-to-value ratio
- Longer repayment terms
If you’re looking for a way to get a great headquarters for your small business, without getting weighed down with excessive interest rates, then a stated income loan is an excellent choice. This is especially true for businesses that have a hard time qualifying for traditional financing, either because of credit problems or a lack of available collateral.
How To Apply Getting started with our commercial real estate financing programs isn’t difficult. We can help you through every step. Contact one of our finance Consultants right away for more information. Our team will let you know exactly what kind of property documentation to submit.