What Lenders Look for in Commercial Borrowers (And How to Stand Out)

When it comes to securing commercial financing, it’s not just about finding a lender. It’s about convincing a lender that your project is worth the risk. As a commercial lending brokerage firm, NordlyUS Capital works closely with both borrowers and lenders, giving us a front-row seat to the key factors that determine whether a loan gets approved or denied.

Here’s what most commercial lenders are really looking for and how you can stand out as a strong borrower.

1. Solid Business or Investment Plan

Lenders want to know how you’ll use the funds and whether that plan is viable.

🔍 What they evaluate:

• Property type and location

• Use of proceeds (acquisition, renovation, ground-up, etc.)

• Exit strategy or long-term cash flow

  
  

✅ How to stand out: Provide a well-written summary that shows your market knowledge, projected income, timeline, and backup plans. Include photos, appraisals, or comps when possible.

2. Experience and Track Record

Inexperienced borrowers often raise red flags, especially in high-risk projects like ground-up construction or fix-and-flip loans.

🔍 What they evaluate:

• Previous successful deals or projects

• Industry or investor background

• Your management team (if applicable)

  
  

✅ How to stand out: Highlight past projects, even small ones. If you’re new, consider partnering with an experienced co-borrower or work with NordlyUS Capital to structure the deal strategically.

3. Creditworthiness and Financial Strength

Your credit score and liquidity matter, even in asset-based lending.

🔍 What they evaluate:

• Personal and business credit scores

• Liquidity (cash reserves)

• Debt obligations and net worth

  
  

✅ How to stand out: Stay ahead by resolving delinquencies, preparing personal financial statements, and clearly showing your capacity to cover payments or carry the loan.

4. Property Cash Flow (Especially for DSCR Loans)

For income-producing properties, lenders will look at the Debt Service Coverage Ratio (DSCR) to make sure the property can pay for itself.

🔍 What they evaluate:

• Current or projected rental income

• Operating expenses

• DSCR (usually 1.20+ is ideal

  
  

✅ How to stand out: Keep clean rent rolls, leases, and expense statements. Be honest about vacancies and show a plan to stabilize the property.

5. Collateral and Loan-to-Value Ratio (LTV)

Lenders are risk managers. They need to know their investment is protected.

🔍 What they evaluate:

• Property value vs. loan amount (typically under 75-80% LTV)

• Asset condition and location

• Marketability of the property if it had to be sold

✅ How to stand out: Provide strong supporting documents like appraisals, purchase contracts, and contractor bids. A lower LTV or additional collateral can improve approval odds.

Bonus: Your Broker Partner Makes a Difference

Commercial lending is more than a checklist. How your deal is packaged and presented can make or break your approval.

NordlyUS Capital help you stand out by:

• Structuring your deal for optimal terms

• Connecting you with the right lender for your project type

• Pre-screening and underwriting before submission

• Advocating for your file and negotiating on your behalf

Final Thoughts

The commercial lending landscape is competitive but when you understand what lenders want and work with the right brokerage team, you can position yourself for faster approvals and stronger financing terms.