Atlas Alternative Finance
Atlas Alternative Finance

International Commercial Loan Blog

Bank Financing versus Alternative Private Lending.

When considering commercial real estate financing, there are several choices available. The most traditional option is getting a loan from a bank. Investors may also want to look into alternative forms of financing from other sources, such as Atlas Alternative Finance.  The first step in obtaining financing, however, is some basic research on what is available.

One challenge in any commercial real estate transaction is risk. Will this investment triple in value in the next 5 years, or is there another real estate bubble about to burst?  This uncertainty can make it difficult to get a loan at a satisfactory interest rate because banks and other lenders may be nervous about the risk of uncertainty. From uncertain markets, economic risk, and increasing regulation, there are many reasons to be cautious.

Banks offer certain advantages for commercial real estate financing. They can frequently offer the lowest mortgage rates on the market. With traditional loan qualification guidelines, their procedures may lower a borrower’s risk of default. They also offer long-term options, which spread the risk out over twenty years or more.

On the other hand, there are some aspects to bank loans that cause some borrowers to look elsewhere. Loan packages typically have a rigid down payment structure with strict income verification and credit score requirements. The approval process can be long and drawn out, lasting as long as three months before the financing is secured. Banks rarely lend on non-conforming product types and if the transaction does not fit perfectly inside the bank’s credit box it can be nearly impossible to secure financing through this route . They also impose high pre-payment fees, making it difficult for borrowers to get out of paying the full value of the loan if they want to sell the property.


Funding through alternative lenders can be secured extremely quickly once the parties come to an agreement about the terms. Typically the qualification process is simpler, more efficient, and less expensive. There are a few things to keep in mind, too. Most loans have short terms, and the underlying real estate serves as collateral for the financing. Usually the borrower must show the property’s income potential in order to obtain the loan, which can be challenging.


Atlas Alternative Finance has number of funding sources that are not traditional and have the flexibility to structure the deal so it makes sense to all stake holders.   Our specialty is working on transactions that may require creative structuring, in the form of commercial business financing, senior debt financing, mezzanine financing, participating debt, subordinated debt, equity capital, joint ventures, asset-based loan, unique capitalization, or hard money.   Give us a call today to talk about how are funding platforms can help your business.


Atlas Alternative Finance
5550 Wild Rose Lane
Suite 400
West Des Moines, IA 50266
515-661- 6269




Contact Us Today!

Free Funding Analysis

Atlas Alternative Finance

5550 Wildrose Lane
West Des Moines, IA 50266
Office 515-661-6269 Email

News & Events

Get Social with Us!

Print Print | Sitemap
© Atlas Alternative Finance