Retail property owners are everywhere, and many of these property owners are looking for commercial financing. As a commercial mortgage broker, it’s a great idea to get to know these local business owners and let them know what kind of services you offer. Whether these potential borrowers are looking to purchase a retail space, would like to refinance to make some improvements or pay some bills, a small-balance commercial mortgage may be the answer. Here’s what you need to know before you submit the loan scenario:

Understand your borrower’s credit.

The borrower’s credit is an important tool for any commercial lender when deciding whether or not to finance a request. It’s important to provide your lender with the most recent credit report possible and to discuss the report with your borrower. You both need to be able to discuss any past financial or credit issues that your borrower has had.

Know the property and the business.

Make sure you know the facts about the building your borrower is pledging as collateral. Where is the property located? How large is the property? What is in the building and is your borrower planning to operate from the property? All of this information will help your small-balance commercial lender evaluate the loan request.

Discuss the use of funds.

Any commercial lender will want to know how your borrower plans to use the money, whether it’s purchasing retail space to start or expand a business, or refinancing their mortgage to improve an existing business. The more information you provide, the easier it will be for the lender to make a decision.

Know your borrower’s ability to pay.

Your commercial lender will need to know that your borrower can make their monthly payments. Be sure to provide relevant information about your borrower’s business and any third party rents the property produces.

Many retail property owners run small businesses and often have a difficult time obtaining a bank loan. However, you can help these borrowers obtain the mortgages they need by submitting all the relevant information to a small-balance commercial mortgage lender. Be sure to understand your borrower’s credit and their property, as well as how they plan to use the money and how they plan to pay it back. This information is a great start to getting your retail borrower the commercial mortgage they need to succeed.

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