Benefits of commercial hard money loans

Commercial businesses that fail to access traditional financing can now access a wide range of financial services from hard money lenders to grow their businesses.

last updated Monday, May 15, 2023
#Hard Money Loans #Faster Processing

John Burson     Subscribe
Benefits of commercial hard money loans


The advent of the banking crisis, the immediate economic collapse, and subsequent over-regulation in the financial and banking sector increased the hurdles small and medium business owners face when looking for loans in traditional banking systems. Many businesses have a more challenging time trying to access conventional loans. The availability of alternative investing and financing methods or hard money lending in Los Angeles and other California counties makes it easier for businesses to meet their financial and capital improvement needs.

Real Estate as Collateral

Many businesses in California use real estate as collateral when applying for loans through alternative financing options. Lenders do not rely on your FICO credit score or tax returns when assessing your loan eligibility. In the current economy, many business owners suffer from low credit scores, mainly because of turmoil in economic times. Unlike traditional loans, where you must present an excellent credit score, hard money lenders assess your eligibility against your real estate property. Once you submit your estate, they can calculate a proportionate amount and provide the money you need for your business growth.

Faster Processing

In traditional lending institutions and systems, the loan application process can take months before you get approval. However, hard money lenders offer a quick turnaround, with some extending your credit within ten days after the initial inquiry. Hard money lenders are more empathetic to businesses; they understand that you need money to inject into your business fast, which is why most loan approvals take less than two weeks. This also saves you time and energy you should invest in your business’ success.

Accepts a Wide Range of Real Estate Assets

Relying on traditional lending systems is quite often difficult; once you present your real estate as collateral, the hard money lender will assess the type and condition of the property before they consider your loan application. On the other hand, hard money lenders extend loans against apartment buildings, mobile home parks, retail stores, residential investment properties, office spaces, and entitled land. This means that loans are more accessible to business owners who own non-tradition properties; you can confidently present any real estate for consideration.


In commercial hard money lending, you can easily access capital or growth funding for your business without presenting proof of income or your credit score. Regardless of the global or national economic climate, you can confidently apply for access to a loan in the shortest time possible. The growth in the complex money lending sector means you no longer rely on traditional loans to succeed in business.


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