Chris Tollinchi is Principal and Director of Finance at CMAC Partners. Having secured financing for hundreds of medical groups during stressful periods, we asked Chris for his best advice in securing financing during the current volatility.

Regardless of where one stands on the issue of tariffs, one thing is clear: the ongoing tariff struggle has caused substantial volatility in the financial markets. This volatility poses a particular challenge for physician groups seeking financing for new projects or refinancing existing loans coming to term. While we may not be able to control unpredictable market shifts, we can take strategic steps to minimize the risk.

Why Moving Quickly Matters

While most borrowers focus primarily on interest rates, the greatest risk may not be the rate itself, but in the shifting availability of debt or the changing terms of that debt - both driven by increased lender aversion to risk.

In periods of heightened uncertainty, lenders tend to tighten their credit standards, reassess internal risk models, and in some cases, reduce their overall exposure to commercial real estate. This shift in posture can lead to:

• Decreased willingness to lend, even to otherwise qualified borrowers.
• Longer approval timelines due to increased internal scrutiny.
• Reduced Loan-to-Values, which can be particularly impactful if a borrower's available equity has been diminished in a falling stock market.
• Higher credit spreads to offset perceived or actual increases in risk.
• Withdrawal of previously extended proposals or terms.

When banks begin to pull back, securing favorable financing becomes more challenging - and often more costly. Acting with urgency can help lock in terms before conditions shift further.

To minimize the risk of unfavorable outcomes, borrowers should move decisively and expeditiously.

5 Steps to Accelerate Your Financing and Get to Closing

To protect your interests and maximize financing outcomes, we recommend the following actions:

1. Request Proposals Early
   Initiate the financing process as early as possible. Providing banks with adequate time to evaluate your request increases the likelihood of receiving competitive proposals—especially before market conditions tighten.
   
2. Prepare a Comprehensive Credit Package
   The RFP should be clear, detailed, and well-documented. Include all salient terms such as desired security covenants and debt coverage ratios. A strong package demonstrates preparedness and instills lender confidence.
   
3. Secure Commitment Letters Promptly
   Upon receiving a favorable proposal, act quickly to obtain a formal commitment letter. This not only locks in the terms but also signals mutual intent, reducing the risk of a lender withdrawing due to shifting market dynamics.
   
4. Maintain Open Communication
   Keep in constant communication with all stakeholders—banks, attorneys, and consultants—to keep the process moving smoothly and avoid preventable delays.
   
5. Be Prepared to Act Decisively
   Ensure that all internal approvals and required documentation are in place. Being prepared to move promptly allows you to capitalize on favorable terms before they potentially disappear.

Conclusion
Periods of uncertainty bring added complexity to the lending landscape. At CMAC, we continuously monitor market shifts and work proactively to help our clients navigate these challenges and mitigate potential risks. In a volatile environment, moving swiftly and strategically can be the key to securing optimal terms—and avoiding costly delays or less advantageous financing outcomes.

If you have questions or would like help navigating your financing process, we’re here to support you every step of the way. Schedule a call with our team.