When you need money to start a business or project, but your credit scores are not high enough to secure a traditional business loan, hard lenders for business may be an alternative source of funding.
Hard Lenders for business loans
Hard lenders for business can provide a secured loan to start a business or complete a remodeling project of the building you plan to house your business. It is very often difficult to get a small business loan from traditional banking institutions when your credit scores don’t equal the number they have in mind, and it might even require a large down payment. Even when the Small Business Administration (SMA) agrees to guarantee your loan, you must still meet their guidelines.
Using any secured loan involves the risk of losing the assets you use to secure the loan. However, the traditional alternative might leave you with a business plan you can’t implement, because you lack funding. Hard lenders for business do not consider your creditworthiness; they want to ensure the asset or property you use as collateral is worth the risk, in case of default.
How It Works
Suppose you have a building and property you want to house your business, or you want to buy a building and remodel it as a business; you can use the building to secure a loan to preparing it. Suppose, too, that the SBA has stated they could guarantee the full amount if the building met code and was ready to conduct business. You could then borrow the money you need from hard lenders for business, short-term, to refurbish it. The amount of the loan is equal to or less than the appraised value of the building’s after repair value (ARV).
Once you complete the renovations and get the SBA guaranteed loan, you can repay the hard money borrowed. Plus, during the period of restoration, you might only need to pay the interest or deduct the interest and fees from the amount borrowed.
The interest rates are normally much higher than traditional lenders, and there are always additional fees for borrowing, but it is a short-term loan. The interest may only be a few thousand dollars (which might be a tax deduction – check with a tax adviser) as opposed to a 30-year mortgage, where the interest might double the loan amount by the time you pay it off.
Why Red Door Funding?
Red Door Funding, at(832) 539-1099, has the money you want to get your business started or project completed. At Red Door, the loan professionals are flexible and do not require all the hoops traditional lending institutions put you through to get a loan. You complete a credit application here, Red Door Funding will get an appraisal, and you can usually have the amount you asked for in a few days. Send an email with your questions,email@example.com