In turbulent times like these, even strong, stable businesses can experience credit challenges that make it harder for them to get the equipment they need. As lenders tighten their belts, restrict lending to some types of businesses, and reduce the range of acceptable credit ratings, reasonable lending options can be difficult to find.
In the world of commercial lending, there are options available if your company is being hindered by its credit rating.
Storied lending works on the assumption that the strength and creditworthiness of a business does not rest solely on its official credit rating. It takes into consideration your “story” and allows you to explain what caused the credit issues. Perhaps there has been a past bankruptcy or tax lien. Many issues are beyond a business owner’s control, like a global pandemic for example! How you plan to use the financing to move your business forward also carries weight with the lender as they make their decision.
2/Collateral Based Financing
Traditional lenders base their underwriting primarily on credit ratings. Collateral based lending decisions are determined by the equity in your business—specifically the cash and collateral your business owns.
That collateral can take many forms:
- Real Estate
- Equipment, Tools, and Machinery
- Letter of Credit
- Certificates of Deposit
Where can you find this type of financing for your business? Here at Terrace Finance, our commercial team is pivoting every day to help our customers navigate these challenging times. We have developed a number of new programs to help businesses overcome credit obstacles. Our Collateral Based Financing Program is serviced by several lenders with expertise in storied and collateral-based lending.
About Terrace Finance
Terrace Finance was built to help business owners make sense of their financing options. We have assembled a network of lenders under one umbrella and streamlined the process of connecting businesses like yours with compatible lenders.
To get the ball rolling on this versatile program or any of our other commercial programs, fill out our commercial application and a member of our team will provide a personalized assessment for you.
For more information, visit the Terrace Finance commercial financing page or contact one of our team leaders: