Tuesday 30 September 2014

Commercial Hard Money Lenders Give Loans Fast Even If Borrowers Have Bad Credit Scores

By Tom G. Honeycutt


Borrowers who have no credit, or bad credit, and have no documented source of income, will find it impossible to secure a regular loan. That's where commercial hard money lenders can help; they can give loans fast, regardless of a borrower's credit score or income potential.

You can take out a commercial hard money loan for various reasons, such as for a business or real estate investment. You do need to be aware of the risks involved if opting for this type of loan, though sometimes it may represent the only option you have and so the benefit will outweigh the risks.

These lenders are private lenders who are able to offer loans that are unconventional, also called high-risk loans, and so can be more flexible about who they offer them to. The loan is based on the value of your assets, so it won't matter what your credit rating is, or other eligibility criteria that conventional lenders would take into consideration. One thing to keep in mind, however, is that the interest on these loans is a lot higher.

As a temporary solution, these loans can help a person get out of financial trouble fast. They should only be considered if there are no other alternatives available, and should only be relied on for the short term. It is important to recognize that there are just as many good lenders as there are bad ones, so it pays to check them out thoroughly beforehand and avoid ending up worse off.

A commercial hard money lender gives loans based on the value of your assets, usually real estate. The loan can be up to 80% of the property, and does not take into consideration your credit rating, income, or your ability to repay the loan. Loans can be processed very quickly and finalized in as little as one or two days.

A good lender will not ask you to make a payment up front for any reason, even though some do so. Another point that will help save you money is not to go through a broker, who require commissions to be paid. Always check the terms and conditions of your loan carefully, and make sure that you understand the whole process, including all costs, and repayment terms.

A good commercial hard money lender will work with a borrower's financial circumstance to offer them a loan that is right for their current needs. A person can safeguard their business investment this way by getting a loan as quickly as possible, even if they have a poor credit score, until they are able to secure funds from elsewhere.




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