Commercial hard money loans aren’t something you typically hear about in casual conversation, and if you’re like most people, you’re wondering what they are – and whether they could help you.
What Are Commercial Hard Money Loans?
Commercial hard money loans are designed to help business owners get access to cash quickly. They aren’t the same as traditional commercial loans; in fact, there are several key differences.
In order to obtain a commercial loan through a bank or another lender, you generally have to provide:
- Proof of income
- High credit scores
- Tax returns
- Financials from your business
You’ll also have to go through inspections, appraisals and a number of other requirements before a traditional lender will agree to let you borrow money.
Conversely, a commercial hard money loan doesn’t require as much documentation. These loans are asset-based, so the lender is more interested in the value of the property. That’s not to say that your credit scores and other information aren’t important – it’s just that commercial hard money lenders are usually willing to take risks that banks and other lenders won’t take.
Commercial Hard Money Loans vs. Traditional Commercial Loans
For the most part, traditional lenders take weeks (or months, in some cases) to approve commercial loans. The underwriting process can be extensive, but you may not have the luxury of time.
That’s where a commercial hard money lender comes in.
A commercial hard money lender is usually able to provide the money you need more quickly than a bank or traditional lender can. It’s important that you know that these types of loans are designed for short-term use. The interest rates may be higher than they would be with a traditional loan, but commercial hard money loans are generally faster, simpler and easier to obtain for most borrowers.
Are You Thinking About Getting a Commercial Hard Money Loan?
If you may need this type of loan, call us at 404-814-1644 or fill out our contact form. You can also apply for a commercial hard money loan online. Paces Funding specializes in connecting borrowers with the money they need, and we may be able to help you, too.