Jeff Barber on commercial financing with Lehigh Financial Group in Allentown

A Conversation With: Jeff Barber, president of Lehigh Financial Group 

LVB: Tell me about Lehigh Financial Group and how you got started. 

Barber: Lehigh Financial Group is an Allentown-based commercial mortgage brokerage firm that helps business owners, investors and real estate developers secure financing for commercial properties and business-related projects. 

Before entering the commercial financing industry, I owned a distribution business and worked closely with many small-business owners throughout the Lehigh Valley.  

Through those relationships, I developed an understanding of the financial challenges business owners face. A mutual friend recognized my knowledge of mortgages and encouraged me to pursue commercial financing as a career.  

That eventually led me to establish my own brokerage, which became Lehigh Financial Group. 

I have now been doing this for 27 years. Our firm has grown by focusing on personal service, strong lender relationships and finding practical financing solutions for each client. 

LVB: When does a client come to you? 

Barber: Clients typically come to us when they are purchasing or refinancing commercial real estate, acquiring a business, expanding an existing operation, purchasing equipment or completing a construction or renovation project. 

Some clients contact us before approaching a bank because they want help understanding their options. Others come to us after their current bank cannot provide the structure, loan amount or terms they need. We also have a huge referral base of realtors and accountants that send us business as well. 

The best time to contact us is early in the process. The sooner we can review the transaction, the more effectively we can help the client establish a realistic financing strategy. 

LVB: How do you help them obtain the financing they need? 

Barber: We begin by learning about the client, the business, the property and the purpose of the financing. We review the financial information, determine the strengths and potential challenges of the transaction, and then identify the lenders and loan programs that are most appropriate. 

We help structure the request, organize the financial package and present the transaction to lenders in a clear and complete manner. We also help negotiate the loan terms and remain involved throughout underwriting, appraisal, environmental review, documentation and closing. 

Commercial financing can involve many moving parts. Our role is to manage that process, anticipate potential issues and keep everyone working toward a successful closing. 

LVB: What kinds of businesses do you work with, and how do you know what kind of financing is best? 

Barber: We work with a wide range of businesses, including restaurants, medical and dental practices, automotive businesses, manufacturers, hotels, contractors, retailers, professional offices and commercial real estate investors. 

There is no single financing program that works for every business. We evaluate the purpose of the loan, the business’s cash flow, available collateral, credit history, required down payment, time frame and long-term goals. 

Depending on the transaction, the best solution may be conventional bank financing, an SBA 7(a) or SBA 504 loan, equipment financing, a commercial line of credit or a short-term bridge loan. Our experience and lender relationships allow us to compare the available options and recommend a structure that fits the client’s specific situation. 

LVB: What should a businessperson know before coming to you for help? 

Barber: Business owners should be prepared to provide a clear explanation of what they want to accomplish and how much financing they need. They should also expect to provide business and personal tax returns, current financial statements, a personal financial statement, a business debt schedule and information about the property or business being purchased. 

It is important to understand that lenders will closely evaluate cash flow, credit, collateral, management experience and the amount of money the borrower is investing in the project. 

Most importantly, clients should be open and transparent about any potential challenges. Credit issues, prior losses or unusual financial circumstances do not automatically prevent a loan from being approved. However, we need to understand those issues early so we can explain them properly and determine the best financing approach.