Business hard money lenders lend money to businesses that may not qualify for a traditional business loan or need operating capital quickly to make payroll, invest in more inventory, another building or any other business expense. The simple truth is, developing a good relationship with a hard money lender is a smart business.
Many financial advisers will tell business owners to shy away from this type of loan because the cost might be too high. The interest rate and fees from business hard money lenders will cost more than traditional lenders such as banks, credit unions, and savings & loans. However, conventional lenders can take four to six weeks to decide on your application.
With hard money lenders, qualifying and getting the money you need is much quicker, and the loan is usually short-term. Therefore, the actual amount of money you will need to repay makes the interest rate less critical than with a long-term loan. It is, after all, the cost of doing business. And, there are no penalties for early repayment.
Collateral for a Hard Money Business Loan
Business hard money lenders usually require a piece of real estate, commonly the commercial property in which the business resides. Though it depends on how much you need, a business person could use their home as collateral, if there is no mortgage or another lien. These investors do not want your business property or house; they want a guarantee they will get repaid.
Once again, when you consider using this type of loan, there is a risk involved. In business there are always risks involved and if you do not qualify for a conventional business loan, where else are you going to get the money you need to conduct business?
Knowing the risks is crucial but keeping your business solvent might require taking some risks. The critical part of making that decision is getting a loan from business hard money lenders you can trust, and in the Houston area that is Red Door Funding.
Who Are these Business Hard Money Lenders in Houston?
Red Door Funding, (832) 539-1099 is a lending partner for investors. If you are an investor you can apply online. When you have questions that can’t be answered by our FAQ page, send us an email at dwilliams@reddoorfunding.com.