Conventional loans help organizations meet their financial goals. But they have their drawbacks. For instance, you might have a small business owner or an investor who would struggle to verify a steady source of income in order to satisfy the needs of a bank or credit union. Perhaps you’ve experienced this very scenario yourself. Our position on this is pretty simple: a lack of verifiable income shouldn’t stop you from borrowing.
Traditional lenders have their reasons for verifying income. All of them are legitimate. But as private lenders, we can be more flexible. We do not need to verify your income because we offer a loan based on the strength of your assets. In fact, asset-based lending is that which separates hard money from conventional loans.
Why Banks Do What They Do
To be fair to banks and credit unions, they do what they do to protect themselves. Following the 2008 housing crash and subsequent recession, banking regulations were reviewed and strengthened for the purposes of preventing similar problems in the future. New regulations forced banks and credit unions to be even more stringent about income verification. As such, they no longer go the extra mile. They go an extra five miles.
Modern income verification requirements can make it nearly impossible for some organizations and individuals to secure conventional loans. And even when such loans can be secured, the process for doing so is time consuming. It can take months to get a loan approved and funded.
What We Do
As private lenders specializing in hard money and bridge loans, we offer our customers quick access to much needed cash. How quick is that access? Generally, we can get a loan approved and funded in a matter of days. However, we have had past cases that dictated we move much more quickly. We were able to get the loans approved and funded within 24 hours.
In short, Actium Partners specializes in funding worthwhile commercial needs with short term lending. Our hard money and bridge loans meet immediate financial needs without a lot of hoops to jump through, paperwork to submit, and so forth. We rely mainly on asset strength to make loan determinations.
How We Do It
Asset strength is all about collateral. As a borrower, you would bring some sort of asset to the table as backing for the loan you are requesting. Think of a real estate investor who uses the property being acquired as collateral. Or you might have a small business looking to expand. The business owner offers property the business already owns as collateral.
Either way, we would value the asset as part of our application review. We would compare its value to the amount of money being requested, then apply our loan-to-value (LTV) ratio to determine whether to approve the borrower’s application. Simply put, we would agree to fund the loan as long as the asset offered as collateral meets our standards.
Once a loan application has been approved, all that remains is drawing up the documents, getting them signed, and getting the loan funded. There is no complicated underwriting process that needs to pass through multiple hands. We keep things simple so that our customers don’t have to wait.
If we were to put you through the same income verification process as conventional lenders, funding loans would take us just as long. But again, hard money is based on the strength of your assets. We can get a loan approved and funded as quickly as we can value the asset in question. That is what it boils down to.
