Colorado Commercial Mortgage Brokers
Right now lending institutions are getting rid of massive quantities of debt at somewhere close to fire sale prices which means this is a good era to purchase that debt. The fed is unloading shares they bought from financial organizations, making it, as always a good era to be a bank executive. What about the borrowers looking to borrow money from those same lending institutions? Business lending in the future is still hard and credit markets while easier than a few years ago have a long recovery ahead.
There are quite a few corporations acquiring financing this decade though, many of those companies are not being financed by lending institutions. A lot of the commercial financing that is being acquired at present is most likely coming from non-bank lenders that while they have similarities to banks, are not technically banks because they do not have depositors. These sources will in the year 2012 and possibly for the next year be the primary source of commercial loans to businesses that don’t have the best credit, the best business model or a long term relationship of lending with a bank.
In the coming years, financing will likely be built on a more appropriate foundation of collateral and therefore will be more secure for the banks, lenders and future borrowers looking to acquire borrowed funds. The premise of future business lending projects will likely be built on this discipline.
Why are lending institutions that are not banks often able to lend when banks will not? These institutions don’t carry the same burdens and liabilities banks do. The operate out of self interest only and do not have to maintain any responsibility to depositors.
Ideally most would rather get their commercial mortages through a bank than through an institution that simply lends the capital their investors control. When banks are at their best and the your credit is as well, this is likely the best way to access commercial mortgages. At present, this is not the scenario andthese lending organizations have to replace traditional lending options.
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