In the commercial finance industry, Alternative Lending refers to any lending practice or program that happens outside a traditional banking institution. The traditional banks have historically viewed small businesses and commercial real estate investors as greater financial risks.
SCFN works with alternative lenders that specialize in working with business owners and commercial real estate investors with limited or no collateral, less than perfect credit situations, minimal profitability, or limited experience. While many small business owners and commercial real estate investors think that traditional sources of business capital (like banks or credit unions) are the answer, alternative lenders are often able to provide much quicker access to cash, a significantly easier and streamlined process, and more flexible lending programs than these institutional lenders.
For new business owners and first-time commercial real estate investors who need help getting started, it can be extremely difficult to qualify for a bank loan. Most traditional banks require excellent personal and business credit, 2-year proof of revenue, a healthy cash flow situation, and at 2 years of experience running the business or prior real estate investment experience.
At Southern Capital Funding Network, we encourage the small business owner or real estate investor to speak with their local business banker FIRST when seeking financing solutions.
However, if your local bank or credit union isn’t able to provide a suitable financing solution due to credit situation, revenue, profitability, asset type, business type or experience, please contact one of our Regional Directors or Area Market Managers for assistance.
In most cases, SCFN will be able to arrange financing with one of our Alternative Lenders that will accommodate your financing request. Once you have stabilized your business or owned and operated your commercial property for at least 2 years, we will work with you and your local banker to qualify you for a traditional long term bank financing option.