Short on capital? Consider nonbank lenders

As banks continue to scale down on lending amidst tighter LTC constraints and reduced deposits, owners and developers are turning towards nonbank lenders, such as private capital and C-PACE lenders like PLG, to get creative with their capital.

Why are nontraditional lenders a viable option in today's market? Here are a few benefits:

• They can lend more - nonbank lenders often don't have lending limits and can therefore provide more capital than banks, which are tightening their credit limits in the current market.

• No deposit requirements - without capital locked in bank deposits, borrowers can use their funds elsewhere, such as funding reserves, purchasing other assets, and more.

• Nonrecourse loans - most bank loans require full recourse, while nonbank lenders often offer partial or non-recourse loans, decreasing liability in case of loan default and providing more protection for the borrower.

• Faster approval - oftentimes, nonbank lenders are smaller organizations that have less administrative obstacles in the way of credit committees and decision-makers.