Transitional Commercial Financing Can Help You Get More Loans Approved & Funded In 2024!

When it comes to commercial lending, Business Bankers say “no” a lot more than they say “yes”! Superstar Business Bankers learn how to turn today’s “No” into a future “Yes”! This is where Transitional Commercial Financing comes into the scene! Transitional financing is exactly what its name implies: it is financing that transitions a deal from a “no” to a “yes”!

I am certain that you’ve been in a situation where your credit team just couldn’t get comfortable with a deal because of some risk or issue that needed to be addressed before they could approve your deal. Here are a few examples:

• Purchase land and get it entitled before construction starts
• Purchase land at a higher LTV than the bank’s credit policy allows
• Completely rehabilitate a property and lease it up before permanent financing can be approved
• Purchase a building that is currently investor but will be owner-occupied at some point in the future
• Complete tenant improvements before the loan is approved

These are just a few of many examples of when your credit team likes the deal but can’t approve it until the risk or issue is resolved. The problem is that your client or prospect needs financing in order to move forward. Most bankers pass on the deal. Superstar Business Bankers talk to their clients or prospects about transitional financing. Transitional financing is basically short-term financing that helps your client or prospect address the risk or issue and get the opportunity to a point where your credit team is willing to approve it.

Transitional financing is underwritten for as short as few months and up to 3 years and is typically interest only. Transitional lenders are transactional non-relationship lenders which means that you don’t put your client relationship at risk. Rather than saying no, you should use transitional financing to turn today’s “no” into tomorrow’s “yes”.

Call or email me if you want to learn more about transitional financing: 310-210-4571 or [email protected]

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