Building Fortunes With Prodigy Commercial Lending
We are lenders who offer commercial loans to business or financial institutions, to fund the growth or operations of our customers. Our fundamentals are to provide skills to small business lenders, business bankers, branch bankers, and commercial lenders dealing with the small business market.
We serve both non-profit organizations and profit companies, offering long and short term loans.
Differences Between Commercial & Residential loans
- They are between a company and commercial banks
- They have higher interest rates and therefore considered to be of higher risks by banks
- They have various restrictions on repayment, preserving the level of risk on lenders as well as anticipated yield on loan.
- Based on their asset’s projected Net Operating Income (NOI), commercial loans are sized and underwritten.
- Their amortization period is longer compared to the loan term, e.g., a commercial loan of 7years with an amortization period of 30 years.
- The financial loan penalty decreases in the amount as a percentage of the loan each year.
Residential Loans
- They are mainly between a bank and an individual.
- Residential loans are paid at a rapid rate or earlier without penalties
- They have lower interest rates compared to commercial loans.
- The creditworthiness and income history of the individual buying the property determines how the loans are underwritten and sized.
Reasons Why Customers Prefer Our Hard Money Loans
- Hard money loans are quickly approved once received than traditional bank loans
- It has greater flexibility to lenders because they do not use a standardized underwriting process.
- It is suitable for borrowers with poor credit, in that, they value collateral and not borrower’s credit
- Hard money loans are quickly issued without verification of personal income or cash flow. However, they are made based on loan to value, credit score, and experience of the borrower.
- Hard money loan lenders provide long term interest rates
- They upgrade a borrower by offering short term loans if the need arises
- Hard loan money lenders provide interest-only loans unlike traditional banks
The Disadvantages Of Commercial Hard Money Loans
- Higher down payment- On more top risk cases, hard money loans offer high downpayment to borrowers, creating lower investment to value, unlike other loans.
- Higher interest rates- hard money loans offer high-interest rates of about 1-10% compared to other loans. In this case, borrowers have to pay points ranging from 2-4 hard money loans unlike other loans
- Shorter payback period- As much as they offer long-term loans, most of their products have a short loan term period of about nine months to 3 years
Types Of Our Commercial Loans
There are various types of commercial loans including, takeout loans, bridge loans, SBA 504 loans, permanent loans, conduit loans, industries loans, and USDA business loans
For cash-out assistance, contact Prodigy Commercial Lending today!
We service the following zip codes and surrounding areas:View a map of our services areas