Delays can kill deals. Here’s how to move from application to approval — faster and smarter.
Why Speed Matters in Commercial Lending
In the realm of commercial real estate, timing is not merely important — it is essential. Whether you are purchasing, refinancing, or financing a development, the capacity to act swiftly can determine whether you secure a lucrative deal or see it slip away.
Regrettably, the process of obtaining commercial loans can be sluggish, intricate, and fraught with obstacles. Numerous borrowers misjudge the duration required or neglect straightforward steps that could significantly reduce their timeline by weeks.
This guide aims to assist business owners, investors, and developers in accelerating their processes — by comprehending where delays occur, what lenders require, and how a proficient team like Nelson Funding can facilitate a confident closing.
1. Understand the Typical Commercial Loan Timeline
The time it takes to secure a commercial loan varies depending on the lender, loan type, and how organized the borrower is.
Here’s a general breakdown:
- Traditional Banks: 45 to 90 days
- Private Lenders: 7 to 30 days
- Bridge or Hard Money Loans: 3 to 14 days
Many institutional lenders tend to be sluggish due to their adherence to stringent internal procedures and compliance assessments. In contrast, private lenders are able to make quicker decisions, frequently relying on the value of the property and the business plan instead of inflexible credit frameworks.
When time is of the essence, numerous borrowers consider bridge loans, which are specifically structured to facilitate rapid closings — occasionally in less than 10 days.
2. The Most Common Bottlenecks That Slow Down Approvals
It’s not just the lender that causes delays. Often, the borrower’s own readiness (or lack of it) is the issue. These are the most common reasons a deal gets stuck:
- Incomplete Financials: Missing tax returns, outdated rent rolls, or inconsistent income documentation
- Unclear Scope of Work: Lenders need to understand exactly what you’re financing and why
- Title or Legal Issues: Unknown liens, unresolved easements, or lawsuits
- Slow Appraisals or Inspections: Third-party reports can add days or weeks to your timeline if they’re not scheduled early
- Failure to Disclose: Surprises during underwriting — like bad credit, unpaid taxes, or zoning issues — can halt progress instantly
The earlier you identify and address these issues, the smoother your approval process will be.
3. Actionable Steps to Speed Up Your Commercial Loan Approval
Here’s what you can do — starting today — to increase your chances of closing fast:
Get Pre-Qualified Early
Pre-qualification provides you and your broker with an advantage. It assists in identifying possible obstacles, selecting the appropriate loan product, and aligning your transaction with the suitable lender from the outset.
Write a Clear Executive Summary
A well-written 1–2 page summary saves time and builds trust. Include:
- Deal background
- Property description
- Use of funds
- Borrower experience
- Exit strategy
The goal is to eliminate confusion and make the lender’s job easier.
Gather All Key Documents Before Submitting
Organize your files into one clean package. Lenders typically ask for:
- Business and personal tax returns (last 2 years)
- Personal Financial Statement (PFS)
- T-12 (Trailing 12-month income and expenses)
- Current rent roll
- Purchase contract or letter of intent
- Corporate docs and entity structure
- Recent appraisal or BPO (if available)
Being organized could shave weeks off your underwriting time.
Be Transparent About Credit or Collateral Issues
It is preferable to reveal issues at the outset rather than allowing them to be uncovered later. Should your credit history reflect late payments or if the property requires maintenance that has been postponed, it is advisable to tackle these matters early and outline your strategy for risk mitigation.
Work With a Broker Who Knows the Process
Seasoned brokers do not merely “shop” your deal; they ensure it is packaged correctly, submitted to the appropriate lender, and they maintain communication with underwriting to facilitate progress. At Nelson Funding, we excel in aligning deals with lenders based on criteria such as speed, adaptability, and the likelihood of approval.
In the realm of traditional commercial real estate loans, the manner in which you present your file holds equal significance to the deal itself.
4. Why Working With Nelson Funding Saves You Time
Most lenders will only move as fast as you — or your broker — allow them to. Nelson Funding helps you avoid bottlenecks and accelerate approvals in several key ways:
Early Pre-Screening
We review your deal thoroughly before it goes out to lenders. If we see a red flag — like a weak DSCR or lack of clarity in your numbers — we’ll work with you to fix it before submission.
Faster Submissions
We package deals to lender specs so they don’t bounce back with questions or requests for clarification. Fewer surprises = fewer delays.
Access to the Right Capital Sources
Due to our collaboration with various private and institutional lenders, we are able to connect you with the lender who is most likely to expedite the closing of your deal — even in the case of challenging properties or value-add projects.
Real Accountability
We do not merely introduce you to a lender and then step back. Our team oversees the entire process from the initial discussion to the final closing.
5. Real-World Example: Funded in 10 Days
A real estate developer located in Arizona faced a 14-day closing deadline for a $4.2 million retail center. Their bank was unable to provide a commitment swiftly enough to meet this deadline, jeopardizing their 1031 exchange.
They contacted Nelson Funding. Within 24 hours, we assessed the file, processed the necessary documentation, and pinpointed a bridge lender within our network capable of acting promptly. The loan was successfully funded in merely 10 business days — preserving the deal, the tax deferral, and the investor’s standing with their seller.
FAQs About the Commercial Loan Approval Process
How long does it take to get a commercial loan approved?
Anywhere from 3 days to 90 days. Banks are the slowest. Private lenders and hard money sources can move much faster — especially if the deal is well-packaged and the borrower is prepared.
What documents are needed for a commercial loan?
Expect to provide tax returns, financial statements, rent rolls, a summary of the deal, a purchase agreement, and legal business documentation. Every lender is different, but these are the basics.
Can I get a commercial loan with bad credit?
Yes, especially if the deal has strong collateral or if you’re working with a non-bank lender. Credit matters — but so does equity, property cash flow, and your experience.
What is the fastest type of commercial loan?
Bridge loans and hard money loans are the fastest, often closing in 5 to 10 business days. They’re ideal for time-sensitive deals where traditional lenders can’t move fast enough.
Do I need an appraisal to get approved?
In most cases, yes. However, some fast-close lenders may accept a broker price opinion or internal valuation in place of a full appraisal, particularly for low-LTV bridge loans.
Need Fast Approval? Let’s Talk
If you’re on a deadline — or just want to avoid unnecessary friction — Nelson Funding can help. Our team specializes in fast, transparent, and realistic commercial financing. We’ll tell you what’s possible, help you prepare your file, and move your deal across the finish line.
- Submit your deal for review
- Get pre-qualified in 24 hours
- Schedule a strategy call today
Contact us or Apply now and let’s get your funding moving.
Borrowers needing quick approvals often turn to bridge loans, which can be funded in as little as 5–10 days.
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Need fast funding for your commercial project? Learn how to speed up the commercial loan approval process and avoid costly delays — tips from Nelson Funding.
