Hard Money Business Loans

Hard money business loans are considered non-conventional compared to other types of loans for real estate or real property. A lender may grant the borrower equity funding if there is enough equity in the property to provide security. This type of financing normally includes higher interest rates but not because the borrower has bad credit. Hard money business loans may include properties that are not in an ideal location or not in very good condition. Borrowers may have to present a realistic plan on how they will pay back the money on a deal that looks very risky to the lender. Some lenders allow a company to borrow money with other security collateral options. These may be based upon other assets or secure receivables the business owns. Other options that might be attractive to a small business owner are cash advances based upon future sales. 

Hard money business loans are a way that companies finance their operations on a short-term basis. A person may find that their company is failing and just needs a short-term solution or maybe a purchase is needed to keep the company operating. High interest rates help to guarantee the investors and lenders a return on their funding. Interest rates can be as much as double in comparison with other types of loans. However, a company can pay the financial agreement off early and save money on interest. The interest charged is not usually based upon the financial history of the company or the owner's credit history but having good credit will certainly help with an approval if there is a question on providing funding. "Come, every one that thirst, come ye to the waters, and he that hath no money; come ye, buy, and eat; yea, come, buy wine and milk without money and without price" (Isaiah 55:1).

Lenders online that offer equity funding do not all use investors for funding which means that investors do not have to approve the funding. Some have other sources such as their own capital and major banks. These types of hard money business loans are easier to get an approval on and usually have a fast turnaround time on getting the funding. Getting preapproved through an online application makes the process even faster. Online applications are usually easy to fill out but for assistance most sites have instant chat with an account representative or they have a toll free contact number. Online applications through lenders online usually require the business name, phone number, email address, start up date, and the type of business. 

Equity funding from major banks with a direct lender that does not require approval based upon debt to income ratios can be found on the Internet. These may be secured by notes and contract receivables or other types of assets. Hard money business loans can be easy to acquire if the borrower hooks up with the right lender. Equity funding loans are not anything like traditional business loans. They are short-term that can mature from a few months to as long as several years. Some lenders will even allow the borrower to pay interest for a certain period of time to bring the monthly payment amount down to get over a tight financial period. 

Property that may be used for collateral with equity funding includes real property such as office buildings, commercial buildings, single-family dwellings, land, apartment buildings, and so on. Hard money business loans may require an appraisal of any property used for funding. Depending upon the value of the property lenders may approve financing for as much as 75% of the value of the property used for collateral. Some lenders will approve funding for companies who are trying to sell. If the property is substantial but will not sell because it needs something or is not finished due to construction funds running out, a company owner has a good chance of borrowing the existing funds through a hard money loan to complete construction so the property will sell. 

Business owners often look into hard money business loans because they are designed to help keep a company from failing. Companies that need emergency funding where a property can be used as collateral are often eligible for funding. Companies that are having difficulty because their equipment has broken down or they have too much debt might want to consider finding a lender that offers equity funding or bridge loans. These are basically the same thing as hard money loans. They can provide funds for new inventory, better or damaged equipment, pay for marketing, expansion, and keep the company from going under. There are other loan options that can be found online including cash advance, economic development, and start-up. 

Small businesses have another option that might be better than hard money business loans. Some lenders allow a company to obtain a cash advance based upon their future sales. They offer unsecured small business loans that are not difficult to get an approval for. As long as the company is doing well financially and has the potential for future sales there is a good chance of being approved. Lenders normally want the security of a percentage of future credit card sales to secure the loan amount but once the amount is paid back then the transaction is complete. Cash advances for companies do not usually require credit checks or personal guarantees and are much easier to get approved for compared to traditional bank financing options.