Banks and credit unions are the first places many people go when they need to borrow. Business owners go to banks as well, but they also go to private lenders. They sometimes find that private lenders are more amenable to meeting their funding needs. Take hard money, for example.
Hard money lending is a form of private lending that focuses on hard assets rather than the typical lending criteria. Hard money lenders are more interested in the value of collateral than credit scores, cash flow, etc. And even though hard money is not the right option for every funding need, it is the perfect solution for many.
Here are four scenarios for which hard money makes sense:
1. Limited Time for Closing
There are times when a borrower needs to close on a loan quickly. For example, consider the real estate developer with an offer in on a very lucrative property. The owner is expecting to close very quickly. With so many other buyers waiting in the wings, the buyer with the offer on the table needs to get a deal done fast.
Banks could take weeks to approve a loan for this type of thing. On the other hand, … Read the rest