With large banks increasingly unwilling to issue conventional loans for all but the largest and most secure investments, entrepreneurs with vision find themselves often left without support by the big institutions.
Entering The Small Business Hard Money Loan Market
If an investor discovers, in the middle of planned renovations, that there is a cash shortage, there is no need to stall the project while waiting for a conventional loan to come through. There is, similarly, no need to put up personal funds in order to cover the difference until profitability is realized.
Hard money loans are designed to weigh the value of the loan against the property value rather than the credit history of the recipient of the loan. This is incredibly valuable for small businesses and single-family property owners who tend to find their needs left unrepresented by the larger banking institutions, who in turn feel that the risks are too great to merit the investment.
With commercial real estate lending performed by bridge loan professionals and hard money lenders, it is possible for small businesses, apartments, and single-family property landlords to get access to the funds they need without having to wait for a conventional loan approval. When in the middle of a renovation project, that time can be a life-saving element with properties that cost investors more every day.