Commercial Loan 101: What Type of Loan Borrower Are You?
Let me ask you a question for a second – what type of Loan Borrower do you think you are? Or actually, let me back things up a little bit…what exactly is a Loan Borrower?
It’s defined as “a person or organization that takes out a loan from a bank under an agreement to pay it back later, typically with interest.”
In our industry, there are 2 Types of Borrowers that we normally work with. They are: Bankable and Unbankable. Pretty simple, huh? Let me give you the characteristics of each one:
BANKABLE BORROWERS: These types of Borrowers are the top echelon of people who often fit the criteria of the traditional banking system. They are able to qualify for the best interest rates and terms. Typically they are above satisfactory in the following things:
- Liquidity – They possess a very strong net worth of at least double or triple their desired loan amount
- Collateral – They own various properties in their portfolio in addition to their primary residence
- Credit – They carry a credit score of at least 720+
- Experience – If the loan pertains to a Business Acquisition or Commercial Real Estate purchase
They’re able to basically qualify for any type of Commercial Loan in the market place.
UNBANKABLE BORROWERS: These types of Borrowers usually do not qualify for bank financing so they’re in another group altogether. And trust me, it’s definitely not a bad thing. Over 90% of people are considered unbankable. But let me tell you a little secret…there are alternative options out there that you may not know about.
You’ll be able to connect with opportunities that will provide you an offer that is in the same ball park as a bank’s and in most cases, will be able to get money to you quicker.
Bankable or Unbankable we’re here to help you find the best deal. What’s great about working with our firm is that we have access to over 100+ Direct Lenders all over the U.S. so we have a wide variety of options to provide for any type of Borrower who utilize our service. ALL THE BEST!