It is no secret that hard money loans typically go to property investors looking to add to their portfolios without the immediate need for traditional financing. But hard money loans also represent a strategic way for business owners to access capital locked up in commercial property and business assets.

Businesses approach hard money lenders for the same reasons real estate investors do. They appreciate the speed at which we work. They find the asset-based lending model advantageous. They know they will not have to jump through hoops only to have to wait months to get the cash they need today.

3 Ways Hard Money Supports Business Needs

You should note that small business loans can address most types of business needs. But as a form of traditional funding, the small business loan has its drawbacks. The other side of that coin is a hard money loan capable of getting around the shortcomings of traditional financing.

Here are three ways hard money supports business needs:

1. Equipment Investments

In some industries, equipment investments come with a high price tag. Business owners can tap into property equity to fund new equipment, machinery, or vehicles with hard money loans that are easy to arrange and funded quickly. It’s even possible that the new equipment and machinery could act as collateral for the loan.

2. Expansion Projects

Businesses looking to expand may need to acquire new property. A hard money loan secured by existing property could be critical to closing the real estate deal in a timely manner. Afterward, the company can arrange a traditional loan to support the acquisition. As with other types of hard money loans, the property being acquired secures financing.

3. Inventory Financing

Although unusual, hard money loans designed for business are sometimes used for inventory financing. A company has an immediate need to rapidly increase its inventory for seasonal fluctuations or to accommodate unexpectedly rapid growth. Regardless, commercial real estate and business assets act as security.

The beauty of working with a private lender is flexibility. Lenders can choose to fund hard money loans for whatever projects interest them. As private lenders, we aren’t locked into a limited business model that only supports one or two types of loans.

The Same Strategic Benefits

Business owners should know that hard money offers them the same strategic benefits real estate investors enjoy. At the top of the list is speed. Compared with traditional lenders, hard money lenders are lightning fast.

Hard money loans can typically be approved and funded in under a week. When an emergency arises and a company cannot wait on its traditional lender, hard money can save the day with fast funding.

Other strategic benefits include:

• Underwriting based on assets
• Access to tailored loans
• Flexibility in terms of how funds are used
• More personalized service

As a hard money lender, Actium Lending strives to make our application and underwriting processes as streamlined as possible. We want to get you an answer and get you quickly on your way.

Minimal Documentation Requirements

Making it all possible are the minimal documentation requirements hard money lenders are known for. We require very little compared to traditional lenders. As long as all your documents are in order at the time of application, we can get you going in no time.

As a business owner, you might one day have financial needs your bank isn’t willing to look at. Consider hard money as an alternative. Hard money lending takes advantage of equity in your commercial properties and business assets. Why not unlock those assets to improve your business?