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Why Summer is a Great Time for Small Businesses to Secure Commercial Mortgages

Commercial Mortgage
Posted on 
June 3, 2024

When it comes to securing a commercial mortgage, timing can significantly influence the terms and success of your loan. While many might assume that spring or fall are the ideal seasons due to moderate business activity and stable markets, summer can present a set unique advantages that can make it an excellent time to secure a commercial mortgage. Here’s why:

Faster Processing Times

With many businesses experiencing a slowdown in operations due to vacations and a general seasonal lull, lenders and financial institutions may not be as inundated with applications and requests as they are during other times of the year. This can lead to faster processing times for commercial mortgage applications. You might find that the approval process is more streamlined, and you can secure your funding quicker than anticipated.

Preparation for Year-End Goals

Securing a commercial mortgage in the summer allows businesses to position themselves strategically for year-end goals. Whether you’re looking to expand your operations, invest in new properties, or refinance existing debt, obtaining your mortgage in the summer gives you ample time to plan and execute your strategies effectively. By the time the busy fourth quarter arrives, you’ll have the necessary financing in place to meet your objectives and capitalize on market opportunities.

Opportunity to Capitalize on Summer Deals

The real estate market often presents unique opportunities during the summer months. Property owners who have been unable to sell during the peak spring season may be more motivated to negotiate and close deals before the end of summer. This can work in your favor, allowing you to secure a property at a better price and with more favorable terms. Additionally, borrowers looking to take advantage of summer discounts for their businesses can secure a cash-out refinances for working capital.

Networking and Relationship Building

Summer is a prime time for networking events, industry conferences, and social gatherings. These events provide valuable opportunities to build relationships with potential lenders, real estate agents, mortgage brokers and other key players in the commercial real estate market. Establishing strong connections can be instrumental in securing favorable mortgage terms and gaining insights into the best financing options available. By leveraging these networking opportunities, you can enhance your chances of a successful mortgage application.

Less Competition

While some businesses may delay their financing plans until the fall, taking advantage of the summer period can reduce competition for the same pool of funds. With fewer businesses vying for commercial mortgages, you may find it easier to secure the loan you need with less pressure and more favorable conditions. Lenders may also have more flexibility in their lending criteria, giving you an edge in the approval process.

Securing a commercial mortgage during the summer offers a range of benefits, from faster processing times and unique real estate opportunities to enhanced networking prospects and less competition. By planning your financing needs strategically around this season, you can position your business for growth and success in the months and years ahead. Don't overlook the potential advantages that summer can bring to your commercial mortgage journey.


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