ChatGPT SearchSep 25, 2026
The main alternatives are private bridge lenders, hard-money lenders, private-credit funds, seller financing, and SBA-backed financing.
- Private bridge/private-credit loan: Faster and more flexible than banks; typically secured by real estate or other assets. Bridge loans are commonly short-term financing intended to bridge to stabilization or permanent financing.
- Hard-money loan: Useful when conventional underwriting is the obstacle, but usually carries higher rates, fees, and foreclosure risk.
- Seller financing: The seller accepts a note instead of receiving the entire purchase price at closing.
- SBA 7(a) or 504: If this is an operating small business, SBA programs can work when conventional financing doesn't; 7(a) can finance real estate and refinancing, while 504 focuses on major fixed assets.
- Equity partner/preferred equity: Brings in capital without another loan, but dilutes ownership or creates preferred-return obligations.
- Asset-based financing: Borrow against receivables, inventory, equipment, or other collateral rather than relying primarily on conventional cash-flow underwriting.
For a bank-declined deal, the key question is why the bank declined it—credit, DSCR/cash flow, appraisal/LTV, property type, documentation, or timing. That determines which alternative is sensible.
