HARD MONEY LOAN
Hard money loans are an essential tool for helping businesses of all sizes get ahead in the short term. They provide fast, high level purchases that help you take advantage when long terms financing isn’t available like during economic slowdowns or if there’s another financial crisis happening nearby.
Overview
Hard money loans are a great way to finance your real estate investments. These unsecured and often higher risk forms of lending can be used for purchases or construction projects, as well renovations on an existing building that needs more space to house new inventory.
Hard money loans can be a great way to purchase high end equipment for your business, especially if you have an existing asset base that can provide the necessary collateral. This type of loan product will leverage all aspects from those assets and use them as security on new purchases or repairs.
Hard money loans can be a great option if you need short term financing. You’ll only pay interest during the term, then apply for repayment with an easy to read balloon payment at end that will cover any balances due.
LOAN HIGHLIGHTS
- Hard money loans are short-term finance solutions that can be replaced by long term financing at the end of their terms.
- Financing for any business needs can be secured on assets like real estate, equipment, or outstanding invoices.
- Secured loans are a great option for those with lower credit scores.
- Loans typically have lower loan-to-value ratios and higher interest rates because of their short-term nature.
Disadvantages
- If the long-term financing doesn’t come through, borrowers could be stuck with payment penalties.
- Assets are the most important thing when it comes to securing a loan, and lenders will often require that you have real estate or equipment as collateral.
- High-interest rates and low LTVs can be found with some hard money loans.
Advantages
- Hard money loans are often approved and released within days or weeks.
- Hard money loans give you more flexibility because they're not restricted by traditional bank rules.
- Assets such as collateral can be used to secure a loan, instead of relying solely on the borrower’s credit history.
- Hard money loans can be a great way to finance large business expenses.
Quick Application
Use our five minute application to get a clear understanding of your funding options, terms, and interest rates.
