Hard Money Loans
A company’s assets are sometimes used to secure a loan in order to come up with the necessary funding. Hard money loans are one of several types of asset-based financing options that you can utilize along with accounts receivable and inventory financing. As a lending institution that has much experience in the field of commercial real estate financing, our hard money lending services are just one of many options we can offer you.
How Hard Money Loans Work
Real estate serves as collateral for securing this type of loan. While other factors, such as revenue or credit history, may still be considered, depending on the lender or the purpose of the loan, real property remains the primary factor. The funding that can be received through hard money loans is in fact based on a property’s quick-sale value. As opposed to appraised market value, this is the reasonable price the lender can expect to sell the property within a short timeframe.
In a typical hard money lending program, a business that submits a property worth $1 million, for example, can expect to receive an amount between 60 to 70% of this value. Interest rates in this type of loan are naturally based on the real estate market and the availability of hard money credit. With ample funding resources of over $500 million in capital and capital commitments and practically unlimited capital for commercial lending at our disposal, we can offer far more generous loan-to-value (LTV) ratios for established clients.
Benefits Of Hard Money Loans
This is definitely one financing method for businesses to get quick and reliable access to much-needed funds. Hard money lending doesn’t follow the usual criteria of more traditional loan products, which makes it a faster and more responsive financing solution. There are critical situations where time becomes a more important consideration than maintaining a clean balance sheet. This type of loan may just be the right infusion to revitalize your business and move it towards a positive direction.