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In your search for the right source of credit, you probably came across the term: <\/span>commercial loan brokers<\/i><\/b>. Who are loan brokers, what do they offer you, and why should you care? Brokers’ services can save you a lot of time in your search for financing and find you opportunities you might have had trouble discovering on your own. But you should be aware of the risks as well as benefits of using a broker. <\/span><\/p>\n Simply put, a broker connects two sides in a business deal, combining the roles of purchase <\/span>and <\/span><\/i>sale agent, and working in the interests of both sides. Real estate agents are an example of brokers: they connect buyers and sellers and perform a valuable service as an intermediary. <\/span><\/p>\n A loan broker will \u201cfloat\u201d your loan application with several lenders and present the best offers to you. Besides finding loans with attractive rates and terms, a loan broker may find loans that can be delivered very quickly\u2014sometimes within 24 or 48 hours. There are also websites that serve as loan brokers, comparing loans and giving you a list to choose from. Up to <\/span>three-quarters of all online loans<\/span><\/a> originate this way. <\/span><\/p>\n Brokers should be able and willing to find the best loan options for you, but there are no guarantees. After the recession of 2008, the home mortgage brokering industry was regulated under the <\/span>Dodd-Frank Act<\/span><\/a>, but that oversight does not extend to commercial loan brokers. California licenses loan brokers, but the licensing requirements in California are quite light. Be sure to do research before committing to a broker just because they are licensed. <\/span><\/p>\n Of course, many commercial loan brokers do a wonderful job\u2014both in person and online\u2014and help many businesses, but others have been known to give inaccurate information or write unfavorable provisions into the fine print of their loan agreements. In order to make sure you understand everything about your commercial loan broker, consider asking the following questions: <\/span><\/p>\n If a broker hesitates or refuses to answer any of these questions, it might be a red flag. Keep in mind that although the loan broker is expected to have knowledge and experience that you do not, they do not have access to any lenders or financing opportunities that you could not find on your own.<\/span><\/p>\n The emergence of online lenders in recent years has been a response to the increasing difficulty of getting a loan from a conventional bank. Online lenders fill the market\u2019s need for an alternative to conventional lenders. That said, it is a good idea to understand the options conventional lenders offer you before approaching alternative lenders or a loan broker. <\/span><\/p>\n Primarily, you should keep the<\/span> Small Business Administration (SBA) 504 loan<\/b> in mind before diving into the complex and potentially stressful world of loan brokering. Unlike conventional banks, the 504 loan program has remained accessible in recent years. The <\/span>eligibility requirements for the 504 loan<\/span><\/a> are designed to allow for maximum accessibility. A 504 loan can be used to buy or upgrade land, buildings, or equipment with a long service life. <\/span><\/p>\n A conventional lender provides 50% or more of the total project. Your Certified Development Company (CDC) facilitates the SBA loan for up to 40%, or $5 million ($5.5 million for manufacturing projects or projects that include energy-efficiency measures). The borrower provides a 10% down payment. <\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_round_chart type=”doughnut” stroke_width=”2″ values=”%5B%7B%22title%22%3A%2250%25%20Conventional%20Lender%22%2C%22value%22%3A%2250%22%2C%22color%22%3A%22blue%22%2C%22custom_color%22%3A%22%2350485b%22%7D%2C%7B%22title%22%3A%2240%25%20CDC%20%22%2C%22value%22%3A%2240%22%2C%22color%22%3A%22violet%22%2C%22custom_color%22%3A%22%23f7f7f7%22%7D%2C%7B%22title%22%3A%2210%25%20Borrower%22%2C%22value%22%3A%2210%22%2C%22color%22%3A%22vista-blue%22%2C%22custom_color%22%3A%22%23f79468%22%7D%5D”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Besides the accessibility, flexibility, and cost effectiveness, a 504 loan has additional benefits: <\/span><\/p>\n You can also easily prequalify for the 504 loan. Prequalifying is not the same as applying, but it will give you an idea of what to expect from a 504 loan\u2014how much down payment your loan may require, what your buying capacity is, and how much total financing you may receive. It can also give you an advantage over other buyers when you bid on a property. Prequalification usually takes 48 hours or less, and TMC Financing averages 18 hours. <\/span><\/p>\n Knowing your options is the key to finding the best financing available to you. Even if you choose to seek expert advice on loans, you will benefit from doing some homework of your own, and the 504 loan is a smart place to start.<\/span><\/p>\n TMC Financing<\/span><\/a> is a Premier Lender with the SBA, which gives us the ability to make faster funding decisions. Our experts would be happy to answer all your questions about the 504 loan and to help you find the funding that is best for you. <\/span>Contact TMC<\/span><\/a> today to get started. <\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n\n","protected":false},"excerpt":{"rendered":" Brokers’ services can save you a lot of time in your search for financing and find you opportunities you might have had trouble discovering on your own. But you should be aware of the risks as well as benefits of using a broker. <\/span><\/p>","protected":false},"author":19,"featured_media":7420,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[141,178],"tags":[],"class_list":["post-7418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","category-sba-101"],"acf":{"related_posts":null},"yoast_head":"\nWhat Does a Loan Broker Do? <\/b><\/h3>\n
Questions for a Loan Broker<\/b><\/h3>\n
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Try an SBA 504 Loan <\/b>First<\/i><\/b><\/h3>\n
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