“Innovation in most industries comes from
small, nimble organizations. In the world
of commercial real estate finance, this is
defined by nonbank lenders.”
by Chris Hurn
View these articles and more at
“The Clock Is Ticking for SBA Refinancing,”
“ 10 Strategies for Building Client Wealth,”
“Condos, Outside the Box,”
“504: SBA’s Shining Star,”
“Catch More Business With SBA 504 Loans,”
Savvy consumers have low tolerance for hassles, so
the customer-service experience had better be great.
Frankly, this is an area where nonbank lenders have
traditionally shined. Nonbank lenders, without the
typical red tape of a traditional bank, have stolen many
customers by being faster and more accommodating
to busy clients.
For lenders that don’t have huge marketing budgets
or the luxury of millions of customers to mine for loan
prospects — like big banks do — creativity is a must.
Nonbank lenders have learned that innovation can be
a key advantage.
The first mobile app for U. S. Small Business Administration (SBA) 504 loans, for example, was created years ago,
right around the time apps became a popular thing.
More recently, a commercial real estate loan-evaluation
system that uses artificial intelligence to provide loan
approvals within two hours was developed.
The system enables borrowers to fill out key information fields, then drag and drop financial documents
into the secure file system. The software then reads
documents, such as tax returns, financial statements
and business-debt schedules.
The system reviews the documents, structures
the loan, applies the real estate transaction data to
underwriting guidelines for qualifying deals and then
produces a detailed loan-approval letter. This represents a truly disruptive innovation in commercial
real estate finance. What normally takes two to three
weeks has been reduced down to mere hours. Innovation in most industries comes from small, nimble
organizations. In the world of commercial real estate
finance, this is defined by nonbank lenders.
n n n
The shift is clearly on when it comes to commercial
real estate lending. Banks are lumbering along and
attempting to compete with nonbanks in this new era,
and it’s critical that mortgage brokers make the right
choice when contacting a lender for their next deal.
Let’s hope they aren’t using a rotary phone. ■
Chris Hurn is the founder and CEO of Fountainhead Commercial Capital, an industry-leading, national
nonbank lender founded in February 2015 by some of the most experienced and awarded small-business
lenders in the U.S. The company specializes in SBA 504 loans and low loan-to-value commercial real estate
loans, ranging from $200,000 to $20 million. Having literally written the book on SBA 504 loans,
Hurn loves sharing the benefits of the program with all owners of small to midsized businesses.
Reach Hurn at (800) 770-1504 or firstname.lastname@example.org.
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