When the conventional track for securing commercial financing for you company starts looking bleak, you may need to get the extra ‘bump’ in cash-flow you need by applying for either a “soft” or “hard” money loan.
In a previous piece, we discussed how a “soft” hard money loan works and even shared a client case -study. On this piece, I’m going to speak about a second type of alternative financing known as private or “hard” money lending.
This type of financing is typically used when time is of the essence – clients usually need to secure their capital in 2 weeks or less. Some other reasons why people may need “hard” money are – bad credit, excessive deferred maintenance on the property or a high vacancy rate.
Hard money loans can also be used to “rehab” a property that will either be sold or rented with plans to refinance it later after the project is completed. “Hard” money loans are short-term for the most part, usually 12 – 24 months. These loans do have higher interest rates and fees than other loan types typically 12% or so but the payments that are made on “hard” money loans are interest only.
The fees from these loans can be rolled into the loan amount, and in most cases so can the monthly payments. This is called an interest reserve.
A Client We Worked With Who Needed A Hard Money Loan
Carmine H. was looking to secure $325,000 in capital for a project her company was working on. Her credit score was too low for a conventional loan and she needed her money fast. For these reasons, and more, Carmine was the perfect candidate for a “hard” money loan.
She ended up securing her capital at an interest rate of 12% (with interest only payments) and her money was in her hands in just 9 days.
We Help Our Clients Secure Affordable Financing Fast
Over the last fifteen years, the team at Complete Commercial Finance has become a sought after consulting firm in business finance and commercial mortgages because we continuously aim to simplify the process used when helping our clients secure the capital their business needs.
With our years of experience and strong nationwide lender relationships – there is no doubt that we can bring the financial assistance you need quickly and with the best interest rates.
If you have questions, comments , or concerns about your situation, please reach out to us in whatever way you prefer. You can fill out the form on the right of this page, call us at 860-906-4848 to schedule a comprehensive assessment of your needs, or email firstname.lastname@example.org to speak with one of our client care representatives.
Above all, in less than 24 hours you will know if you have found affordable financing to take your business growth to the next level.
My best to you always,
President, Complete Commercial Finance
PS – To learn more about the types of loans we secure for our clients, visit the products page on our website.