⚡ Non-Bank Lenders vs. Banks: Who Really Funds Deals Faster? 🏦

💼 Speed vs. Stability: Why Non-Bank Lenders Are Winning the Funding Race in 2025 🚀

🏦 Non-Bank Lenders vs. Banks: Who Funds Deals Faster?

When it comes to commercial and residential real estate financing, speed often determines success. Whether you’re a developer eyeing a time-sensitive acquisition or an investor facing a 1031 exchange deadline, how quickly you can close matters just as much as the rate or terms.

That’s where the comparison between banks and non-bank lenders becomes crucial — especially in 2025’s dynamic lending environment.

💡 The Traditional Bank Model

Banks have been the go-to for decades — offering lower interest rates, government-backed security, and a wide range of products. However, bank loans come with bureaucracy:

·Lengthy underwriting timelines

·Rigid documentation requirements

·Multiple layers of approval committees

·Strict regulatory oversight

A typical commercial bank loan can take 45–90 days to close, depending on complexity. For many investors, that’s simply too slow.

⚙️ The Rise of Non-Bank and Private Lenders

Non-bank lenders — such as private equity funds, debt funds, REITs, and direct capital advisors like Medallion Funds — are filling the speed gap.
These lenders specialize in fast, flexible capital for real estate and business borrowers who don’t have time to wait for committee meetings.

✅ Typical close time 21-45 days
✅ Custom underwriting based on asset performance, not personal credit
✅ Fewer regulatory roadblocks
✅ Ideal for bridge loans, DSCR loans, fix-and-flip, construction, and refinance deals

In 2025, non-bank lenders fund more than half of all CRE loans under $25M — a massive shift that reflects both market efficiency and borrower demand for agility.

📊 Comparing the Two:

Feature

Banks

Non-Bank Lenders

Approval Speed

45–90 days

7–21 days

Documentation

Extensive

Streamlined

Underwriting Focus

Credit & tax returns

Asset performance

Loan Flexibility

Rigid

Highly customizable

Best For

Low-cost, long-term loans

Fast closings, creative structures

🏗️ Real-World Example

A Houston-based investor needed $3.5M to acquire and reposition a small retail center in Katy. The bank estimated a 75-day close — far too long given the seller’s 21-day deadline.
By pivoting to a non-bank lender, we closed in 14 days, funding through a bridge loan that allowed renovations and a refinance into a long-term DSCR loan later.

👉 The takeaway: In fast-moving markets, speed = opportunity.

📈 The Bottom Line

Banks still have their place — especially for stabilized properties and borrowers seeking long-term, low-rate loans. But for investors, builders, and business owners, non-bank lenders have become the go-to option for quick, flexible funding.

If you’re ready to move fast on your next deal, connect with Medallion Funds. Our network of 600+ lenders ensures you get the right funding source — at the right speed.

📲 Visit https://billrapponline.com to get pre-qualified today.

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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory