5 Strategic Steps to Take Before Pursuing Commercial Financing
Whether you’re acquiring a multifamily property, investing in industrial assets, or expanding your retail footprint, securing the right loan can make or break your next move. But with rising interest rates, fluctuating market dynamics, and increasingly cautious lenders, it’s more important than ever to enter the lending arena with clarity, confidence, and strategy.
1. Understand Your "Why" — Define the Purpose of the Loan
Before you begin conversations with lenders, it’s essential to clearly define why you need capital. Are you purchasing new property? Refinancing debt? Upgrading a facility? Each use case has different implications on loan terms, structure, and eligibility.
Tip from the DarkHorse Team: Lenders respond best when your loan request is backed by a well-articulated business plan and a clear path to ROI. Be prepared to explain not just the what, but the why and how—and how the financing fits into your long-term strategy.
2. Know Your Numbers — Financial Readiness is Non-Negotiable
Lenders are diving deeper than ever into financials. From cash flow and debt service coverage ratio (DSCR) to occupancy rates and operating history, your financial readiness will determine your loan options—and your negotiating power.
Key metrics to have on hand:
Net operating income (NOI)
Loan-to-value ratio (LTV)
Debt Service Coverage Ratio (DSCR)
Historical tax returns
Updated rent rolls (for real estate borrowers)
DarkHorse Insight: Today’s lending market rewards borrowers who come prepared. A solid underwriting package not only improves your chances of approval—it shortens timelines and strengthens your terms.
3. Consider the Market Climate — Lending Is Cyclical
Capital availability and loan terms are heavily influenced by broader economic trends. In today’s environment of higher interest rates and inflation pressures, lenders are more cautious—favoring well-capitalized borrowers and lower-risk assets.
What we’re seeing now:
Conservative underwriting in Class B/C multifamily markets
Strong demand for stabilized industrial properties
Hesitancy toward retail unless location and performance metrics are rock-solid
Pro Tip: Stay informed. Partnering with a lending advisor like DarkHorse gives you access to real-time insights and forecasting that helps you time your transaction and select the right lender profile for your project.
Strategic Lending Requires Strategic Borrowers
DarkHorse Advantage: We help you compare and customize financing solutions from a nationwide network of lenders. Our consultative approach ensures you get the loan that works best—not just the first one that comes along.
4. Explore Your Options — Not All Loans Are Created Equal
There are many types of commercial loans, each with different structures, terms, and timelines. From traditional bank loans and SBA financing to bridge loans, CMBS, and private lending—your choice should be based on your project needs, timeline, and long-term goals.
Common loan options:
Bank loans: Lower rates, longer approval time
Bridge loans: Fast funding, higher interest
SBA loans: Government-backed, ideal for owner-occupied properties
Private lenders: Flexible terms, ideal for complex or non-traditional deals
5. Think Like a Lender — Position Yourself to Win
Ultimately, lenders are evaluating risk. The more you can mitigate their perceived risk, the stronger your offer becomes. This means highlighting your track record, showing realistic projections, and demonstrating a viable exit strategy—whether that’s a refinance, sale, or long-term hold.
Borrower checklist:
Clear borrower bio or resume
Realistic pro forma projections
Contingency plans for market fluctuations
Defined collateral and equity structure
From the Experts: Borrowers who anticipate lender concerns—and address them upfront—tend to secure better terms and close faster. Think like a lender, and you’ll be better equipped to win their confidence.
The Bigger Picture: What It Means for Borrowers
Securing a commercial loan today is about more than numbers—it’s about strategy. In a market that favors transparency, experience, and solid fundamentals, borrowers who come prepared gain the upper hand.
At DarkHorse Capital Group, we bring decades of real-world lending expertise to help you navigate the complexities of commercial finance. From initial planning to loan close, we’re in your corner—ensuring your project gets the funding it deserves, at terms that make sense.
Ready For Your Next Move?
If you’re evaluating your next move in the commercial lending space, now’s the time to get informed, get focused, and get ahead. Our team is here to provide expert analysis, tailored solutions, and the competitive insights you need to succeed.
