Commercial Financing | Benefits of Commercial Financing with Lenders That Require No Business Plan
Many lenders request a complete, well-written, and realistic business plan before they will provide you with commercial financing. That is because they want proof that you are going to be a low risk investment and that you have realistic expectations about your property.
But not every lender requires a business plan. There are some lenders that will let you move forward without asking for one, making their decision based on your property, credit, and financial history.
Why No Business Plan May Have Benefits
These lenders could, in theory, be beneficial for borrowers, and not just because they decrease paperwork. Without a business plan:
- Lenders Close Faster – Creating and reviewing business plans can take weeks or months in some cases, especially if you do not have a business plan ready because you’re jumping on a great property.
- Costs May Decrease – Creating a business plan can be expensive and time consuming. In some cases you can save thousands of dollars in fees/costs by avoiding such a plan. There is also the time saved from writing it that can be put towards other matters.
- Less to Reject – Finally, if no business plan is necessary, then no loan is going to be rejected because of it. While business plans are only one part of the lending puzzle, anything that is reviewed by a lender could be cause for rejection, and lenders that do review business plans take them very seriously.
While business plans are important, borrowing from a company that doesn’t require a business plan can be to your advantage.
Potential Downsides and Finding Commercial Financing
There are some downsides, however – most notably with interest rate. Some lenders may charge more in interest because without a business plan you may represent more risk. Furthermore, when you do not have a business plan you narrow down the number of lenders willing to provide you with commercial financing, which may limit your ability to shop around.
CRE Lender is the smarter way to find commercial financing. We use your information to connect you to potential loans from thousands of lenders, and find ways to push for you to receive these loans and get the financing you’ve been looking for.
If you’re interested in learning more about our loans and what we can do for you, sign up with CRE Lender today – the nation’s leading provider of lending assistance.
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