Most of today’s business owners realize that they can pursue financing options through sources other than a bank. One type of alternative lending business known as an independent mortgage broker (IMB) has especially captured their attention. It’s hard not to pay attention to IMBs when they are responsible for more than half of all mortgage loans for single-family homes in the United States. While some dabble with other lines of alternative financing businesses, the majority focus on mortgage products alone.

The Role of IMBs in Commercial Real Estate Financing

While some might assume that IMBs are a new invention to provide more choice for business owners, the concept goes back more than 150 years. The expansion of the Midwest stalled due to the inability of banks to move capital because of strict lending requirements. Thanks to IMBs stepping in to meet consumer demand, the expansion of the middle portion of our country continued uninterrupted.

In modern times, IMBs are leaders in the world of alternative financing with some of the top mortgage lenders in the country. Examples include the Veteran’s Administration, the Federal Housing Authority, and the United States Department of Agriculture. As banks continue to pull away from these government-financed programs, IMBs have stepped in and helped millions of Americans secure commercial property and follow their dream of business ownership.

An IMB is a privately-held company owned by one individual or a small group of people. These people all stand to lose their personal investments if the business venture does not succeed. This spurs them to provide excellent service to the people they serve by making loans affordable for them. Consumers benefit from the intense competition between IMBs since they do not have the same guarantee of government backing that banks have.

Is Working with an IMB the Right Choice for Your Business?

This form of alternative financing can be especially attractive for startup business owners who have trouble gaining traditional mortgage approval. Please contact Steadfast Funding Partners to learn more about this and other business financing options.