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Showing posts from November, 2022

How Hard Money Lenders Can Help During Economic Turmoil

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  With all signs pointing toward another recession , many consumers and businesses are finding themselves in financial trouble. During these times, traditional lenders such as banks become more reluctant to approve the critical loans businesses need to survive. This is where hard money lenders  prove to be a beacon of hope.  Help Avoid Foreclosure During an economic downturn, especially as rough as this one, where energy prices  have skyrocketed, it can be tough for businesses to stay afloat. Businesses have to pay salaries, have to pay property mortgage, and their pay off debts to partners, such as vendors, to stay operational. Using hard money loans, business stakeholders can brave the storm. Once their situation starts to improve, they can apply for a traditional mortgage again. Quick Access To Capital Hard Money Lenders are a great option for business owners who are struggling due to short-term challenges in their industry. For instance, companies that were comp...

3 Reasons Why Asset-Based Lending Is Better Than Traditional Bank Loans

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  Asset-based lending  is proving to be quite a popular option  for businesses looking to grow and sustain in a competitive economic environment. They’ve emerged as a viable alternative to traditional bank loans, and many companies even prefer asset-based loans to conventional bank financing. So let’s examine why asset-based lending is better than bank loans. Immediate Cash Asset-based lending  provides immediate cash for businesses looking to bolster their working capital and meet their ongoing cash flow needs. The cash can be used to purchase necessary materials to fulfill a sudden uptick in orders, meet urgent payroll requirements, or for other operational expenses. Quick Process A traditional bank’s lending process is lengthy and involves much paperwork compared to asset-based lending. In some cases, the procedure can take several months as the bank analyzes a borrower’s creditworthiness and the ability to repay. On the other hand, ABL is quick and efficient beca...

Do Hard Money Lenders in Commercial Real Estate Financing Require Appraisals?

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  Hard money lending has recently gained traction as a viable option for commercial real estate financing. That said, you should work with reliable and experienced commercial hard money lenders  who provide a complete package that involves fast approvals, excellent customer service, and controlled expenses to maximize the return on your investment. A common question that potential investors ask is whether hard money lenders in commercial real estate financing  require appraisals. Let’s find out. Determining the Value of Assets Hard money loans for commercial real estate  may not require a full appraisal by a certified company like mortgages or traditional loans. However, you always have the option of doing a valuation. However, the lender would have to substantiate the value of the property. So, how do they do that if it isn’t appraised? The secret lies in hiring a broker who evaluates a commercial property’s value by considering building age, purpose, and declared i...