Advantages of Using Hard Money Loans
Few loans offer the same level of flexibility as a hard money loan. Whether your business needs a quick boost in time for payroll or you need extra working capital to solve your short-term cash flow issue, hard money loans can offer you versatile funding for whatever situation you need. Learn more about how you can grow your business through a hard money loan.
Like most loans, this type of financing requires you to determine the exact amount you need to borrow. However, that amount isn’t typically based on your credit score or financial history. Instead, you’ll place a physical asset as security for the loan. You’ll then receive a portion of the value of that asset. You’ll need to have it appraised in order to determine the resale value of your piece of equipment or real estate.
This allows your lender to confidently loan you money, and it allows you to receive the financing you need regardless of your credit score or the length of operation for your business. The application process is far quicker than a traditional bank loan. Hard money loans require a short application and appraisal of your asset. Once those are completed, you can expect to receive quick cash.
As a small business, it can be difficult to establish a relationship with a bank or other financial institution. A hard money loan is a great way to build credit and trust with a lender. Once you pay your loan back in full you’ll be a better candidate to receive a traditional loan or another type of financing.
Unlike a mortgage or bank loan, you aren’t putting all your finances at risk when choose to use hard money loans. In the event that you’re unable to continue to make payments, your only risk is the asset you’ve placed as security. It’s a stress-free way to receive the cash you need. Don’t wait for a lengthy approval process or risk being denied because of the particular way you wish to spend your cash.
Small businesses are faced with a wide range of unexpected costs. From sudden machine breakdowns to increased demand for your products and services, you need flexible funding available to keep your business thriving. Hard money loans offer the financing you need, regardless of your credit score, with the flexibility you deserve. Take advantage of these short-term loans today to set your business up for success.
