Some entrepreneurs find this form of financing controversial and dangerous, preferring to avoid it. Others, on the other hand, swear to have used it successfully and warmly recommend it to everyone. Where does the truth lie? The best way to see that is through a list of pros and cons.
The Pros of Taking Commercial Hard Money Loans in Miami FL
- The money can be transferred to your account in just one week.
- The paperwork is reduced to proving your ownership of the commercial building you are borrowing for and signing it off as collateral.
- You can borrow up to 60-70% of the collateral’s value, sometimes even more, which is usually much more than banks or other lenders are willing to offer.
- You can always ask for more money or an extension of the previously established repayment term.
- You get to work with professionals who understand your needs and motives and will do everything in their power to see your profitability dreams come true.
- You save money by not delaying the works and (re)opening your business sooner.
The Cons of Taking Commercial Hard Money Loans in Miami FL
- You risk working with loan sharks who are after your property, but only if you do not do your homework and you choose a random lender.
- You pay a considerable interest rate, but you know from the beginning how much it represents and you are the one to decide whether it is worth paying or not.
- Since these loans are only granted for short periods of time, if your business is not as profitable as you may have hoped, repaying your debts on time can be a challenge.