Hard money loans can be extremely helpful for small businesses, especially when you don’t really have a strong credit history, or have not been in business for a long time. Hard money lenders are less concerned about your business credit history than they are about the value of your property or other major assets.
Since a hard money loan is generally provided on the basis of some property value you have, that can serve as collateral that the lender would simply sell to recoup their losses if you should default on a loan. As a small business owner, you would of course, be jeopardizing your store and possibly all the property around it by applying for hard money loan, but as long as you faithfully repay the loan, your assets are secure and you will benefit by using the loaned money in a way that will be advantageous to your business.
Why would you use a hard money loan?
Considering the fact that your business assets might be jeopardized, why would you want to take out a hard money loan? As mentioned above, it’s much easier to be approved for a hard money loan than it would be for a traditional loan. If your business credit history is not strong, you can count on being disapproved by banks and other lenders, but that doesn’t matter as much to an alternative lender, who can use your business property as collateral.
A hard money loan can also be arranged much more quickly than can any kind of traditional loan, simply because the hard money lender is more focused on collateral, rather than on exhaustively researching your business credit history. In addition, there is no standard underwriting process for a hard money loan, so every potential transaction can be viewed from an entirely different perspective. For instance, it might be possible to arrange a unique payment schedule which fits your circumstances, and other terms of the loan might be negotiable as well, so flexibility is another big appeal of these kinds of loans.
Hard money loans with 5 Star Funding Group
There are a number of financial products we offer, including hard money loans, that can help your business stay competitive in the marketplace. Contact us today to find out which of our services and products are best suited to the kind of business you have, and how we can work together to achieve your business objectives.