More businesses are taking advantage of the funding solutions offered by commercial finance firms instead of traditional bank loans. While modern banking has been around for centuries, what is moving businesses to use the solutions offered by commercial financiers?
Over the decades, and especially in the years since the Great Recession of 2008, banks have been raising their credit and collateral requirements on business financing. The reasoning behind this is to offset risk and attract only serious business borrowers. The reality is that higher requirements push new, small, and growing businesses to the sidelines, preventing them from getting the funding they need. Not every business has impeccable credit ratings or owned assets to put up for collateral.
By contrast, commercial finance firms are focused on helping businesses, and they understand that making solutions accessible is the key to success for entrepreneurs. Because of this, commercial finance firms offer a wide range of programs, many of which do not rely on credit ratings or collateral, nor do they place debt on the balance sheet.
Variety of Financing Solutions
Banks provide loans to businesses, and their funding programs typically stop there. Loans and banks go hand-in-hand, but what if businesses need something that goes beyond a traditional debt-based loan? What if they need something without debt? What if they need financing that does not rely on perfect credit ratings or lots of collateral?
Commercial finance firms pick up where banks leave off. If businesses need equipment, cash flow solutions, working capital, unsecured lines of credit, bridge loans with fast closings, or something unique, commercial finance firms can offer custom solutions tailored to the needs of business borrowers, and many of those funding solutions do not place debt on the books, require collateral, or hinge on impeccable credit.
Banks have specific limits on the amounts they can provide business borrowers. Once businesses reach those limits, banks can no longer offer financing to those clients. The smaller or newer the business compared to larger competitors, the lower those limits are when financing is requested.
Commercial finance firms go beyond the limitations of banks and other traditional lending institutions. Commercial funding solutions can offer up to 100% funding for everything from working capital to equipment, commercial property, and more. Additionally, the amount of financing offered is based on the needs of the business, as well as the overall value. There are no arbitrary limits or loan board decisions.
GM Capital Group offers robust and accessible commercial funding solutions up to $25 million and above with low interest rates and up to 100% LTV. If your business needs financing, talk with the professionals who understand your needs. Contact GM Capital Group today.