Regular readers of the Actium blog know that we talk about speed a lot. The speed at which we can approve and fund is one of the things that sets hard money lending apart from its traditional counterpart. But there is more to it than that. In some cases, being able to move quickly is very personal. It impacts a borrower in a very profound way.

Paying Employees on Time

While it is true that most of our hard money in bridge loans is used to fund real estate transactions, we are called on once in a while to meet other needs. Some of those needs are a lot more pressing than adding a new property to a real estate portfolio. For instance, what about a bridge loan that makes it possible for a company to pay its employees?

One of our past clients was a small business owner who found himself in the midst of a cash flow crisis because a check expected from one of his customers never arrived. Payday was coming and he did not have enough cash to make payroll. Fortunately, he owned a piece of real estate he could offer as collateral.

In short, he contacted Actium Lending and asked if we could fund him with a bridge loan. We took a look at his property, determined its value, and approved the application. He was able to make payroll on time. And once he received payment from his customer, he made good on his loan.

Funding for Very Real Needs

It is easy to take a negative view toward private lending because the way we do things is so vastly different compared to banks and credit unions. But the clients we serve are real people with very real needs. We are happy to do what we can, when we can.

For us, the important thing is collateral value. We were able to lend to the business owner because the value of his property covered our risk. More importantly, we were able to move on his loan very quickly because of our asset-based lending model.

The reality is that he could not have waited for a small business loan. SBA loans take too long to be approved and funded. How would he have made payroll? We can work more quickly because our business model is different. Being able to fund so quickly ensured that his employees didn’t miss out on their expected paychecks. Our loan quite possibly kept him in business.

If the Value Is There, So Are We

The point being made here is that we have the ability to be very flexible as private lenders. There are a lot of things we can do that traditional lenders cannot. As we like to say, we are more than willing to quickly fund a borrower’s needs if the requested loan is backed up by real estate. If the value is there, so are we. We will make it happen.

Are you a real estate investor working on a time-sensitive deal that cannot wait for traditional funding? Contact Actium Lending right away. Are you a business owner with short-term funding needs and real estate you can offer as collateral? We are waiting to hear from you.

We work quickly because we know doing so is important to you. You expect us to approve, underwrite, and fund without delay. We have the same expectations of ourselves. Speed is one of the hallmarks of hard money lending. You expect nothing less when you apply for a loan. At Actium Lending, we will always work hard to meet your expectations.