6 Tips for Finding the Right Commercial Loan Lender for Your Business
6 minute read
June 30, 2023


Have you finally made the decision to take your small or medium-sized business to the next level? Congratulations, Marquee Funding Group is here to help. 

Before pulling the trigger on a new loan, however, there are some important tips to consider in order to ensure that you find the right commercial loan lender for your business.

Let’s discuss some essential advice when it comes to finding an agreeable and reliable commercial loan lender who will have your best interest at heart.

1. Understand the different types of commercial loans

The first step to getting the right lender is to know what various types of commercial loans are available and how they can suit your specific needs.

Term Loans

  • Traditional loans
  • Provides a lump sum of capital repaid over a fixed period
  • Secured or unsecured
  • Typically used for funding significant investments — purchasing equipment or real estate

Hard money loans

  • Typically easier to obtain and more accessible for businesses in need of quick capital
  • Repayment terms are often shortand lenders are willing to negotiate terms 
  • Typically require less paperwork and have fewer restrictions on how the loan can be used

Lines of credit

  • Revolving credit facility that grants businesses access to funds up to a predetermined limit as needed
  • Offers flexibility in managing cash flow 
  • Suitable for short-term financing needs
  • Careful management is crucial to avoid drawing on the funds too often and increasing debt loads

Equipment financing

  • Specifically designed for purchasing or leasing equipment
  • The equipment itself or property can serve as collateral

Merchant cash advances

  • A lump sum of funds in exchange for a percentage of future credit card sales
  • Ideal for businesses with strong credit card sales
  • May come with higher interest rates

Invoice factoring

  • Selling outstanding invoices at a discount, providing immediate access to cash
  • Particularly useful for businesses facing cash flow challenges due to slow-paying customers

What’s your loan scenario?

2. Find the right commercial loan lender for your needs

Every commercial loan lender will have different loan products available to their clients. Some have greater strengths based on the frequency and volume of the loan types they approve.

Commercial loan lenders who deal primarily with invoice factoring and who do little or no business with equipment financing could technically meet your needs to get funds for a new piece of equipment needed.

However, matching a commercial loan lender who deals primarily with your type of business needs can streamline the process and avoid unnecessary complications since these lenders know exactly what needs to get done to fund the loan.

Alternatively, if a particular commercial loan product can be used for multiple purposes and has flexible requirements for approval and end uses, it has greater odds of meeting your needs.

3. Do an in-depth review of potential lenders

To ensure you select the right commercial loan lender, conduct a thorough review by following these steps:

  1. Verify credentials: Check the lender’s licensing and registration to confirm their legitimacy and compliance with regulations.
  2. Assess reputation: Examine online reviews, testimonials, and industry ratings to gauge customer satisfaction and the lender’s overall standing.
  3. Evaluate expertise: Determine whether the lender has experience working with businesses similar to yours in size, industry, and financial needs.
  4. Analyze loan offerings: Compare their websites for interest rates, terms, fees, and flexibility of their loan products to find the best fit for your business.
  5. Use Scotsman Guide: You can use this website as tool to find the perfect lender for your specific needs. This website shows a ranking of all the mortgage originators across the country and ranks them based off of volume of loans and types of mortgages they offer.

4. Talk to each lender

It’s one thing to look at a website in order to gauge a commercial loan lender’s ability to meet your needs. It’s another thing to speak directly with a human being who works there. 

Customer service skills and protocols are an excellent way to tell how professional and dedicated a lender is going to behave. Talking directly to a loan officer, secretary, or customer service representative can tell you many things about a company. 

Do they know their business? Do they treat you with respect, or just like another possible paycheck? Are they direct with their answers? Or do they dance around the details, hoping you won’t notice the non-answers in their responses?

Having open and clear communication with your lender can avoid costly misunderstandings.

5. Ask directly about interest rates, fees, and repayment options

Even though we have suggested that you look at their website for this information, you should ask about it directly. 

Websites have to be maintained and updated on a regular basis. Interest rates are always fluctuating, and different loan products will always carry different rates. Even the best companies have changes in policy, fees, and repayment options that should be inquired about directly. The collateral offered for the loan can also alter the rate.

Don’t rely solely on the website information. 

6. Look for flexible terms and payment plans

One of the biggest drawbacks to many loan products is the repayment terms — especially for conventional term loans that have a set schedule for paying back the principal and that might be overly subject to governmental regulations.  

Commercial loans that have flexible terms from the outset, including options for paying back the loan with minimal penalties, can be a great benefit to your bottom line. 

When speaking directly to a possible lender, look for loans with flexible approval requirements, fees, terms, repayment options, and anything else that you could use to your advantage.

Finding the right commercial loan lender — the bottom line

By conducting an in-depth review of potential lenders, talking to them, and asking about interest rates, fees, and repayment options, you can ensure that you get the best deal for your business.

Marquee Funding Group stands as the premier choice for hard money lending, bridging the gap left by banks and traditional lenders.

Collaborating with Marquee offers numerous benefits:

  • Swift same-day approvals
  • Closings in as little as seven days
  • Loan amounts from $50,000 to $20 million
  • Loan-to-value of up to 70%

Our diverse product offerings include:

  • Purchase money loans
  • Rate-and-term refinance and cash-out refinance
  • Owner-occupied and non-owner-occupied consumer/business loans
  • Single/multi-family, commercial, industrial, and land loans

We also provide various construction loans, such as ground-up, fix-and-flip, fix-and-occupy, and value-add options.

Feel free to contact one of our knowledgeable team members for any inquiries regarding hard money lending or a distinctive lending scenario.

Submit your loan scenario today to get started.


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