Why Small Businesses Choose Hard Money Lenders
Sometimes a small business owner can find a way to make life just a little easier. Hey, kudos for that right? If life can be made even a tad simpler, go for it. The more hassle-free life is the better.
Business owners have certain obligations they have to meet. Those obligations are with their customers and their employees. Small business owners understand this even more so than anyone because they have a tendency to have limited financial resources. So when an alternative is found that makes things less difficult that’s a good thing.
Hard money lenders are just one of those alternatives that make life easier for small businesses. Since the loans are approved by private lenders there is a lot more leniency. Private lenders use their own money. Unlike traditional lenders who use the community’s money.
Private Lenders, Easier for Businesses
Here are a few things below that make life easier for small businesses by working with hard money lenders.
- quicker response time
- open to bad credit
- additional funding for renovations
Small business owners are very busy people. They are forever budgeting and figuring out different ways to grow their businesses. So when it comes to choosing the right lender, they may also want to choose the quickest.
Especially, small business owners that work in the real estate industry. Many of whom rely a great deal on being able to purchase a property expeditiously. Properties that need renovating can move out quickly because they’re prices are lower. So, typically real estate investors will have to conger up the funds quickly if they want a particular house.
So, this could present a problem when working with traditional banks. The average time it takes to process a loan in the regular bank can be up to 2 months. But even after that, it could take even more time to transfer the funds to the client. This could dampen the plans for a real estate investor who wants a speedy loan process.
Hard money lenders understand the real estate industry and are willing to work as quickly as possible to get the loan approved and delivered. Chattanooga hard money loans understand the special needs of small businesses. And because of this understanding, they are willing to go the extra mile when it comes to quick loan approvals.
The average processing loan time with hard money lenders is around 2 weeks. And a few extra days to transfer the money into the applicant’s account. This can be impressive to a real estate investor that has very little time and a lot of work to do.
Sometimes small businesses that are just starting out may have damaged credit. Their credit may not have been bad prior, but it became damaged while attempting to manage the company. Chattanooga hard money loans recognize this dilemma. They look at the credit score but do not place a good amount of emphasis on it.
Hard money lenders do not turn down loan applications because of a client’s credit score. They examine the client’s entire financial history. Afterward, they take the time to examine the down payment ability of the client and his/her collateral.
Additional funds for the renovation of the real estate properties are needed often by small business owners who work in this industry. The funding of the property is just the beginning. Next, the investor will need funding to fix up the property. Hard money lenders understand that this renovation funding is part of the industry. Property owners expect this extra funding, which is why they choose to work with hard money lenders.