Your Credit History Doesn’t Tell the Whole Story

By Steve Rogovich
Senior Loan Officer, Kennedy Funding

The Right Lender Sees the Bigger Picture

Everyone has a financial history. And not every chapter is a good one.

Maybe you experienced a business setback, an investment that didn’t perform as expected or temporary cash flow problems that affected your credit.

Unfortunately, those numbers can follow you for years.

For borrowers seeking traditional bank financing, a less-than-perfect credit history can become a major obstacle, even when substantial real estate equity is involved.

But a credit score doesn’t necessarily reflect the value of a property or the opportunity behind a transaction.

And that’s where private lending can make a difference.

At Kennedy Funding, we’re a direct private lender specializing in asset-based financing. While we consider a borrower’s financial circumstances, we place significant emphasis on the underlying real estate, available equity and merits of the transaction.

Because sometimes the most important part of a borrower’s financial picture isn’t what happened in the past.

It’s what they own today.

Looking Beyond the Credit Score

Traditional banks have established lending requirements that don’t always accommodate borrowers with complicated financial histories.

Consider a business owner who experienced financial difficulties but now owns a commercial property with substantial equity. Or an investor emerging from bankruptcy who holds valuable land.

Conventional financing may be difficult to obtain, but that doesn’t automatically mean the property can’t support a loan.

At Kennedy Funding, we evaluate factors such as property value, location, condition, marketability, existing debt and available equity.

For example, a borrower might own a commercial property valued at $8 million and need $3 million to refinance an existing obligation.

While a bank may focus heavily on credit history, we also consider the significant equity supporting the transaction.

That doesn’t guarantee approval. But it gives us something worth discussing.

We offer loans starting at $1 million and can fund transactions of $50 million or more, with loan-to-value ratios of up to 75%, depending on the property and circumstances.

When Traditional Financing Isn’t an Option

Credit challenges aren’t the only reason borrowers turn to private lending.

Some properties, particularly raw land or real estate with unusual characteristics, may not fit conventional lending guidelines.

Others involve complicated ownership structures, approaching loan maturities or acquisition deadlines that require quick decisions.

At Kennedy Funding, we’ve spent decades financing land, commercial real estate and other properties that traditional lenders may find difficult to accommodate.

And because we’re a direct lender, we can evaluate transactions without the same layers of approval commonly associated with banks.

We’ve closed loans in as little as five days, although actual closing times depend on the transaction and required documentation.

For borrowers facing both credit challenges and tight deadlines, that flexibility can be especially valuable.

Every Transaction Deserves a Closer Look

Asset-based lending doesn’t mean credit history is irrelevant or that every borrower will qualify.

We still need to understand the property, existing obligations, requested financing and repayment strategy.

Private lending also involves different costs and terms than conventional bank financing.

The advantage isn’t that we disregard risk. It’s that we evaluate it differently.

And that can create opportunities for borrowers whose circumstances don’t fit traditional lending requirements.

Let’s Talk About What You Own

When someone approaches me about financing, I don’t expect a perfect financial history.

I want to know what you own, what it’s worth, how much you owe against it and what you’re trying to accomplish.

If there are credit challenges, let’s discuss them.

Kennedy Funding has closed more than $4 billion in loans throughout the United States and internationally, including Canada, the Caribbean, Central America, South America and Europe.

We’ve worked with borrowers and brokers facing all kinds of financing challenges.

And if there’s one thing that experience has taught me, it’s this:

Your credit history may be part of your story. But it doesn’t have to be the end of it.

About Steve Rogovich
Steve Rogovich is a Senior Loan Officer at Kennedy Funding, a direct private lender specializing in asset-based real estate financing. He works with borrowers and brokers seeking financing for land, commercial and multifamily properties, including acquisitions, refinancing and cash-out transactions.