Learn Commercial Lending

Most business owners think getting a loan is about having good credit. Bankers think about it completely differently. Here's the framework they use — and what you need to understand before you ever walk into a bank.

Character, capacity, capital, collateral, conditions. Bankers call it the Five C's — but what they actually mean in practice is far more specific than any textbook version. Here's what really matters.

Banks decline applications every day for reasons they rarely explain. Here are the most common real reasons — and what to actually do about each one before you apply again.

If a banker could only look at one number, it would be DSCR. Here's exactly how it's calculated, what thresholds matter, how it varies by industry, and what you can do to improve yours before applying.

Most borrowers are surprised when their banker asks for personal tax returns. Here's why — and how personal income, debt, and obligations directly affect your business loan approval.

Working capital is the lifeblood of every business — especially contractors, retailers, and restaurants. Here's how lenders calculate it, what the thresholds are, and why running thin is dangerous.

The SBA 7(a) is the most flexible and widely used small business loan program in the United States. Here's everything you need to know — eligibility, rates, terms, the application process, and how to find the right lender.

The 504 program is designed for major fixed assets — commercial real estate, large equipment, and facility improvements. Lower rates, longer terms, but a more complex structure. Here's how it works.

They both call themselves banks — but they underwrite loans completely differently, value different things, and serve different borrowers. Here's how to match your profile to the right type of institution.

Community Development Financial Institutions like Accion, Kiva, and Opportunity Finance Network exist specifically to serve borrowers traditional banks won't. Their criteria are different — and often better suited for early-stage businesses.

Bluevine, OnDeck, Fundbox — they approve in hours and fund in days. But the effective APR can exceed 50%. Here's how to calculate the true cost and when it actually makes sense.

After you submit your application, your file goes to underwriting. Here's exactly what happens during those weeks — what the analyst is looking for, what causes delays, and how to make the process smoother.

Why most commercial loans are 5-year adjustable rate, how rates are set, what SOFR and Prime Rate mean for your payment, and how to model your worst-case scenario before you sign.

Every bank has a special assets or workout department. Getting transferred there changes everything about your banking relationship. Here's how loans get there, what happens when they do, and — most importantly — how to make sure yours never does.

Covenants are contractual performance requirements built into your loan agreement. Most borrowers don't read them carefully enough. Here's every major type — financial, reporting, and restrictive — and exactly what to watch for.

Building your own space vs. building to lease are two fundamentally different underwriting situations. Banks approach them with different ratios, different equity requirements, and different risk frameworks. Here's what you need to know before breaking ground.

Banks get nervous when contractors try to finance their own construction projects — and for good reason. Here's exactly why, and what to do if you're a contractor who wants to build your own space.