Website listing business lenders?

Question

Hi everyone,

Does anyone know of a website that lists business lenders, kind of what lendersa does for real estate hard money lenders?

Thanks

Mike Klarman · Answer

My apologies.

Business Lending is tough.  There's a company Fund N Grow that educates ppl on card stacking and teaches them how to unlock capital at 0% for 12 months.  It's not a poof and here's your 100k type of thing.  It is done in cycles and it is not liquidated as cash.  You can kind of ACH ppl money from the cards.  But it is done in cycles about 4 months apart.  And, if you have three cards come in on the first cycle and t hose cards add up to 15k let's say and you use that 15k, when you go to apply for cycle 2 you need to be at less than 50% utilization of those cards so 7500 needs to come back.  Then you apply for cycle two, and in cycle two maybe you get 25k in 4 cards and now they will count that as 40k.  15k in cycle 1, 25k in cycle two.  Same thing though, when you apply for cycle 3 you need to be less than 50% Utilization.  It's not as easy and streamlined as people think.

If you have an LLC that has been around for 3 years and has been making money it can show through tax returns, then the SBA can offer someone 30% of their gross revenue for last tax year in a 10 year, no PPP, interest only loan at around 12%.  You pay 1% per month.  If you borrow 30k you pay 300/month.  Cheap debt considering.  This loan you cannot use to acquire real estate although there is no way for them to check, but they have other loan programs where you can buy real estate.

I'm closing an SBA loan now.  Took 3 - 4 weeks.  Last 2 yrs tax returns, three months bank statements, some forms and that's it.  They wire the money right to your account.

Mike Klarman · Answer

Most oddball lending sounding companies are brokers selling the products of the big boys.  There's a few big national HML outfits that fund most of the bridge and DSCR loans.  Now, if you went to one of these big lenders directly, you'd probably pay the same price as long as the broker wasn't gauging you, especially if you are new.  i know lenders who offer the one point bridge option to direct borrowers, but I know for a fact LOs at these outfits are told not to sell that or give it away.

You do not need to call every lender in America, it's obvious you are new to real estate because you are looking for lenders and asking where to find them.  If you are new, make sure your credit is good.  I have gotten first timers 90% before b/c of deal spread and credit.

You are right to be cautious.  There's all kinds of sharks swimming in these waters.  It's shark week every day in REI world.

If you are new, I can tell you what is out there for you if you have 700+ credit: Anywhere from 75% - 90% leverage depending upon lender, market, deal spread and the interest rate will be anywhere from 11.5% - 12.5%.  Origination should be 2 points, maybe three.  If three you're dealing with a broker for sure and a greedy one at that.  Some lenders, if the Broker does enough volume and the deal is big, they will offer a .5 point rate for bridge and allow the broker to take 1.5 points origination.

I promise you all, it is not the lending terms that will make or break you.  If you paid 4 points and 14%, and the deal spread was 100k, and your GC did a great job you'd do better than someone who paid 1 point at 9.99% and their GC was a mess.  You'd choose to be the former, not the ladder.

Deven Ziertman · Answer

Aggregator sites like BusinessFundingDirectory or Lendersa are good starting points, but they often mix brokers and direct lenders, which can be frustrating. If you're looking for direct lenders, local credit unions, SBA-approved lenders, and regional banks are often more transparent. For non-bank options, industry conferences and meetups can connect you with active private lenders. Additionally, asking for referrals within your network often leads to reliable direct sources. While there’s no perfect public list, with some effort, you can usually find what you need.

Magnus Wikström · Answer

Yeah, that's the conventional way but I'm certainly seeking the unconventional.

Thank you

Magnus Wikström · Answer

@Mike Klarman The topic is about BUSINESS LENDING and not hard money real estate lending. And no, I'm not new to real estate.

Thank you

Magnus Wikström · Answer

I'm talking about something like this

https://www.businessfundingdirectory.com/

But better, less brokers and better filtered for only business lenders and not to individuals

Erik Estrada · Answer

Hi Magnus,

If you are trying to go direct and not work with a broker, I would recommend attending private money conferences.

As a broker I usually attend these once in a while to see who is offering what. Additionally I would ask your current sphere to see if they have recommendations.

Brandon Croucier · Answer

Hey Magnus,

People here on BP would be glad to assist, what exactly are you looking to accomplish?

Website listing business lenders?

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