Non-Conforming Loans May Help Applicants with Low Fico Scores

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Loans
Image: trevorcolecommercial.com

Headquartered in New York City, Trevor Cole Commercial Corp selects a range of such loan products for certain institutions throughout the United States. Trevor Cole Commercial Corp specializes in securing loans for clients with low FICO credit scores.

Most leading banking institutions, only use a FICO score to determine whether they should lend funds to an applicant. A high FICO score, inevitably boosts the chances of an approved loan.

While it may be possible to secure a loan with a low FICO score, other conditions may not be
satisfactory. For example, an applicant with a low FICO score may have a much higher interest rate.

Credit applicants with low FICO scores may seek out independent investors, or financial firms to gain
loans. Such institutions provide nonconforming loans that do not have the same requirements as
conventional banks.

What Are Non-Conforming Loans?

Trevor Cole Commercial Corp. pic

Trevor Cole Commercial Corp.
Image: trevorcolecommercial.com

Trevor Cole Commercial Corp., Inc., specializes in providing small businesses and corporations a wide range of money-lending solutions, including non-conforming loans. Based in New York, New York, Trevor Cole Commercial Corp. serves clients throughout the United States.

Certain criteria qualify a potential borrower for an advance when applying for a loan at a bank. If they meet the criteria, which is outlined by government-sponsored agencies, they will secure what’s called a conforming loan.

If they do not meet those loan standards, another lending option includes what’s called a non-conforming loan. Typically granted by institutions that are not banks, non-conforming loans allow for individuals or companies with poor credit to obtain capital for the homes or projects.

They also enable those with excellent credit to secure capital with a higher limit, than that of conforming loans, enabling these borrowers access to greater loan amounts.

In contrast to conforming loans, non-conforming loans may not have as low of interest rates. These such loans may require underwriting guidelines that differ. However, Government-sponsored agencies do not back such loans. Moreover, may require larger down payments upfront, additional fees, and tougher underwriting rules.

Collectors Can Obtain Loans Secured by Their Art

 

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Art Loans
Image: trevorcolecommercial.com

Trevor Cole Commercial Corp works with commercial businesses and individuals to help them secure funding for a range of endeavors, including real estate development. Additionally, Trevor Cole Commercial Corp assists borrowers in obtaining loans backed by assets like collectible art and jewelry.

Collectible art is considered an asset. While the process of acquiring such pieces can be costly, the investments can fetch larger sums in the long run. Such assets can also be used to help fund various projects, like business and real estate investments, if the collector takes out a loan against the art.

For these reasons, there are banks and other lenders that provide small loans secured by collectible art. As part of the process of obtaining such a loan, insuring the art can protect both the lender and borrower in case of theft, damage, or default payments, should the lender allow the borrower to keep the art in their home while the loan is being repaid.

In most cases, these loans are only available to those with significant collections worth more than $1 million, although some companies specialize in short-term loans against art valued at lower amounts.

Proper Management of Accounts Receivables

Trevor Cole Commercial Corp. pic

Trevor Cole Commercial Corp.
Image: trevorcolecommercial.com

Trevor Cole Commercial Corp is a commercial structured finance company based in New York. Committed to offering a full range of services, Trevor Cole Commercial Corp advises clients on balance sheet assets and accounts receivables.

Accounts receivable management involves three things: assessment of the creditworthiness of potential customers, setting of suitable credit terms, and setting up efficient cash collection systems. This article will focus on the first two.

Before extending credit to a customer, a business owner must ensure the customer is indeed creditworthy. There are a number of ways to verify this. The first is a bank reference. Ask the customer’s bank to give a statement of fact on the customer’s creditworthiness. Another way is by asking another company that deals with the potential customer for a statement on creditworthiness. A credit reference bureau could give more detailed information on a customer’s credit history. If the customer is a company, check its most recent financial statements to get an idea of its total assets, loan book, and annual revenue.

If the customer is credit worthy and you give the person or entity credit, ensure the terms of the credit are clearly defined. This includes details such as the repayment period, discounts for early payment, the interest charged for late payment, and consequences of default. It is wise to have a credit limit for each customer. Do not give credit past this limit until a trustworthy relationship is established between the two of you.

Conforming Loans versus Nonconforming Loans