An Alternative Financial Business that Lends Capital to Business and Real Estate Investors
TMF Capital Group provides business loans and commercial real estate loans from $5,000 to over $500,000,000 to businesses with virtually any type of credit and in any industry.
In addition to being able to take advantage of the opportunities created by loan turndowns from banks, we will be able to provide alternative solutions for businesses and commercial real estate investors that are extremely competitive and more attractive than traditional lending programs.
We have the ability to offer over 50 different types of commercial loans to businesses and commercial real estate investors. We have over 45 lenders that we have been approved to do business with.
The Bias of Net Worth
Overtly, banks are biased against businesses that have low net worth, few assets, and low credit scores. Wealth levels among minority groups are up to 16 times lower than those of whites. Since minority-owned businesses do not have the collateral to offer traditional lenders, banks make the assumption that those businesses will not be able to repay their loans, or at the very least present a higher risk to the bank.
Minority-owned businesses also have credit ratings that average around 700, which is much lower than white-owned businesses. Since traditional channels require perfect or near-perfect credit ratings for consideration and approval – which can even overshadow the performance of the business itself – minorities are facing an uphill battle just to get the working capital they need to maintain or grow their businesses.
Unequal Access to Small Business Financing
It’s a real shame that a growing business can face setbacks and dwindling capital access purely based on their ethnicity and gender. But it happens. Often.
Research shows that lenders assess their borrowers based on cultural stereotypes and the borrowers’ status. In an eye-opening experiment, a survey was done that showed an evaluated series of loan applications where race and gender were tampered with.
Despite the applicant’s having identical financial histories, the results frustratingly show that race and gender “significantly affect lenders’ funding decisions because they alter lenders’ status beliefs about the applicants”, making gaining small business loans for minorities an uphill battle.
In fact, a 2017 governmental service on the availability of credit to small businesses, found that less than 47% of black-owned businesses seeking finance from the bank were funded. This failure rate was highest among all categories by a whopping 10%! Female-owned firms were also more likely to be turned down than their male counterparts despite external factors such as finance and business health being of similar levels.
Loans for minority-owned businesses are hard to come by, but not in the digital lending landscape.
Using TMF Capital Group that is 100% online – it’s perfect for providing business loans for minorities. You can now get a loan for your small-medium business based on the health of your business alone. With none of that gender and racial bias malarkey.
At the TMF Capital Group there will be no shady questions regarding your ethnicity, and certainly no gender inequality. If you are wondering why there’s ‘no cost’ and how this is even possible, think of TMF Capital as a matchmaking service, matching you, the borrower, with lenders that are best suited to your needs. It’s that simple.