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Getting a Property Improvement Loan for Your Commercial Borrower

Maintaining a commercial property is a key concern for many small business owners. However, if your borrower owns a small commercial property, has credit issues or does not report all of their income, obtaining a property improvement loan from a traditional source can be difficult. Fortunately, there is an alternative — finding a small-balance commercial mortgage lender. Here’s the information about your borrower that you’ll need to provide:

  • Explain your borrower’s story

    Many small-balance commercial lenders are “story lenders,” meaning that they are interested in learning about your borrower’s history. Be sure you’re ready to discuss why your borrower cannot obtain traditional financing and be prepared to go over any past financial issues.

  • Tell your lender about the property

    Your borrower’s collateral is a crucial piece of the lending puzzle. Explain what kind of property it is, what sort of business your borrower runs from it, the approximate value, how large the property is and where it is located. You can include all of this information in a brief loan summary.

  • Discuss the use of proceeds

    It’s important to detail how your borrower plans on using the funds provided by the lender. Be specific about your borrower’s goals and the improvements they’d like to make to the building.

  • Provide estimates for improvements

    In order for a small-balance commercial lender to proceed with a property improvement loan, they need to understand the cost to your borrower. Be sure to provide estimates for any work that needs to be done.

Whether your borrower needs to repair their roof, resurface or reconstruct their parking lot, or fix their building’s HVAC units, a property improvement loan with a small-balance lender can help get the job done. Simply make sure to provide the lender with all relevant information about your borrower, their property and the project they’d like to complete, and you’ll be on your way to closing a commercial mortgage.

If you are working with a borrower looking to make improvements to their commercial property, call APEX at 800-262-2739 or contact us online to see how we can help.

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