Bechtel: Non-bank lenders work across a variety of asset classes, including those expected to heat up most in 2018, such as industrial and multifamily. Money360 focuses on small to mid-balance loans in the $1 – 20 million range, which we consider an underserved segment of the market, where we can meet borrower needs, such as surety of execution, but at the same time, maintain underwriting standards that borrowers and investors trust and appreciate. We also offer bridge loans, which non-bank lenders are particularly well-suited to because of the flexibility and creativity we can offer when it comes to structuring deals.

Do you believe that activity for non-bank lenders will increase this year? Why or why not?

We've seen activity for non-bank lenders continue to climb, and 2018 should be no exception; 77% of brokers reported they expect financing through non-bank lenders to increase in the year ahead. One reason we believe activity for non-bank lenders will continue to grow is the constant effort we make to improve the process and experience for borrowers. At Money360, we're continuing to integrate technology into our business model to transform the traditional process of commercial real estate lending. We've also seen an increase in interest and capital from the investor side, with many recognizing we are at an ideal point in the cycle to increase exposure to commercial real estate through private debt for strong, risk-adjusted returns.

GlobeSt.com: How has the popularity of non-bank lenders impacted traditional lending sources?

Bechtel: In commercial real estate, different lending options appeal to different clients and brokers depending on specific financial and operational needs. However, non-bank lenders are continuing to gain ground because of the attractive benefits they can offer borrowers, like speed, flexibility, transparency and surety of execution. Traditional lenders will continue to have their role in financing commercial real estate, though alternative lenders are taking a larger piece of the pie.

GlobeSt.com: What are the benefits and challenges of using non-bank lenders?

Bechtel: The most obvious benefits of non-bank lenders are speed and certainty of close, as well as the integration of technology into the process. There are a variety of non-bank options, such as marketplace lenders and direct lenders—Money360 falls into the direct lender category—for borrowers to choose from. For borrowers, the choice of whether to use a traditional or non-bank lender often comes down to a borrowers unique financing needs – and in some cases a non-bank lender may not be the perfect fit, for example if the size of the capital need is out of scope.