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

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

October 07, 2025•2 min read

⚡ 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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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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