10 Oct Small Balance Lending
Bank consolidation has created a void in which the available pool of banks that are engaged in Small Balance Lending has shrunk. The
The aforementioned void has also affected the private lending market as fewer private lenders are actively engaged in servicing the small business lending marketplace.Subsequently, there is now a dearth of private commercial lenders that provide small balance loans to those that are in dire need of financing.
This past summer saw the largest increase in interest rates occur since 1994. In conjunction with the recent rapid rise in interest rates, inflation and market uncertainty tempts borrowers to refrain from seeking capital until market conditions improve. Turbulent markets can also limit financing options as many lenders and capital sources are prone to exercising an abundance of caution and adopting a conservative lending posture during a challenging economic environment.
In spite of the existing economic turmoil, the need for small balance loans transcends market cycles. As such, real estate investors are in constant need of obtaining debt capital to acquire real estate assets. In addition, small businesses are constantly in search of small balance working capital and capital expenditure loans to fund their operations.
Both small real estate investors and small business retail and distribution operations must seek to find and establish ongoing relationships with reliable small balance lenders to fund their short and long-term business models. This task will continue to present challenges for the aforementioned marketplace as the available number of small-balance lenders has narrowed.
Worth Avenue Capital specializes in arranging debt financing for both small businesses and real estate developers/investors and also handles bank workouts for those same clients. You can learn more about WAC by taking a look at the website and Youtube videos or by contacting WAC’s principal, Michael M. Ciaburri at worthavenuecapital@gmail.com or (203) 605-4082. WAC maintains offices in both Guilford and Greenwich, Connecticut as well as Palm Beach, Florida. Be sure to follow @worthavecapital on Twitter for the latest lending news.