•••BUSINESS STRATEGY•••
advantage of in both the short-term and in the long-term? As every private lender knows, you must evolve your product offering to the demand of the market. What types of loans will be in demand in the short-term and why? Commercial Mortgage Backed Securities are coming in waves this year and in coming years, so this will certainly increase the demand for commercial refinances. Bank lending standards remain stubbornly high over the shortterm, and this also represents opportunity for non-bank lenders. Will your trust deed investors be searching for investment opportunities in coming months and why? Another possible opportunity. THREATS: What is going on outside your company that represents potential threats to your business? For example, the high cost of compliance under the DoddFrank Act has forced many lenders out of the U.S. mortgage market altogether. How have new regulations under Dodd-Frank affected your business and are you in compliance? Other examples include: increased or new forms of competition such as crowd funding platforms, a real estate market correction, sub-prime loans becoming
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readily available again, etc. Have you considered how future changes in the lending environment could affect your business? What about the general state of the U.S. economy? How could this pose a threat to your business? These are just some examples for each category, so consider your own questions and answers when writing your SWOT Analysis. By writing a SWOT Analysis for your own lending business, this simple but effective tool may be able to help you grow your private money lending business this year. By evaluating your lending business as it stands today, while also identifying potential opportunities and threats in the future, your lending business has an increased chance of longevity and profits. And, isn’t that what every lending business wants?
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