COVID-19’s impact on the real estate market has been in a constant state of flux. With renters falling short in payments, many are curious to see how this impacts the lending market. Not every crisis or impact may be as bad as you imagine, there is opportunity! Certain industries and lenders are seeing booms in purchases and capital investment. M1 Capital Corp in White Plains, NY has the latest and greatest times on the alt lending boom during the pandemic in this week’s blog.
Alternative Lenders Making a Come Back?
Many speculate on whether alternative lenders will make a comeback in the months and years ahead. As larger banks begin to tighten restrictions, those looking to invest may seek other avenues. Many small businesses may emerge with substantial debts be unable to clear big bank requirements. Certainly, this could create a market for alternative lenders. Some small, non-traditional firms could step in to fill a credit gap for these struggling businesses as they work to regroup and recover.
A Need for Fast, Streamlined Loan Approval
Another factor that could drive business towards alternative lending is the need for fast, streamlined loan approval. As struggling consumers and businesses work hard to hold on to their investments, waiting for funding may not be possible. People also desire to see things digitized and easily accessible online. Alternative lenders who can create these processes and meet the demands could see large amounts of success.
Non-Traditional Sources Needed
Some alternate lenders may be needed during the pandemic recovery to help finance projects using non-traditional sources of income. We have seen firms use real estate or even outstanding invoices as collateral to approve loans. Some will even permit fast cash dispersals and flexible repayment terms. Many innovative and creative experts in the financial industry have been honing their skills for some time and are able to help with needed innovations.
Be mindful that you truly are working with the right expertise. M1 Capital Corp is here to help. Indeed, alternative lenders should want to see true success in your project and will speak at length with you about the right type of financing. While a lot of non-traditional lenders may have to offer higher interest rates, they should demonstrate they are invested in your plan for ultimate repayment.
Finding the Right Alternative Lenders
We really expect to see an increase in need for alternative lending through quarter four of 2020 and well into 2021. We want to ensure you work with the best team through these challenging times. M1 Capital Corp is here to discuss alternative lending products with you, please feel free to call our team in White Plains, NY.