Coronavirus has done things to the economy no one ever expected. Way back in March, and we were told 15 days would be sufficient to flatten the curve, very few imagined the devastating economic losses that would occur over the next six months. And now, as we start to emerge from the crisis, too many businesses find themselves in financial straits.
Hard money will undoubtedly be a lifeline to some. Whether it’s direct hard money loans to address debt or bridge loans to cover the gap between current payments and future income, private lending will be an important tool in helping the U.S. emerge from what is arguably the most profound, self-induced economic crisis in our lifetime.
Hard Money Is More Flexible
The reasons that make hard money and bridge loans a better option in many cases are even more important now. Right off the top is the fact that hard money is more flexible. Private lenders, like Actium Partners, have the ability to look beyond financial circumstances to come up with creative ways to approve loans. We have the flexibility to write loans based on each client’s circumstances.
You might be facing significant financial challenges as a result of the coronavirus crisis. We have the ability to look at things like collateral and past financial performance to determine whether or not making a loan is worthwhile. We also have the ability to structure loans with longer terms so as not to be a burden on your business.
We Move More Quickly
Over the last several months, we have discovered that businesses trying to emerge from coronavirus have to move more quickly than they otherwise would. Imagine having to take a business that has been virtually inoperable for months and getting it going full throttle as quickly as possible. It is a lot harder than it sounds. And often times, access to funding is a critical issue.
Unlike banks, hard money lenders can make decisions in a matter of hours. We can fund a bridge or hard money loan within a few days as well. That is the kind of speed you might need when you are making lightning fast decisions to get your business up and running again.
Develop a Plan, Then Move
If we could give local entrepreneurs any advice about emerging from coronavirus in Salt Lake City, we would say this: take the time to develop a solid plan, then move on it. Do not continue holding off on execution because you are unsure of where it will all lead. At some point, emerging is going to require risk. If you have a solid plan in place, then start implementing the plan as soon as you can.
From our perspective, that’s really what hard money and bridge lending is all about. We work with our clients to fund their loans as quickly and fully as possible. A big part of that process is coming up with an exit plan. Having a strong plan in place makes it easy for us to approve a loan. A strong plan also gives the client a framework for borrowing. Once we have a plan we can agree on, we move on it.
Emerging from coronavirus is not going to be easy. It is going to take a lot of work from all of us. Know that we will be here with hard money and bridge loans. If you are in need of fast and flexible funding to get your business back on track, give us a shout. We would be more than happy to look into the potential of funding your project.
