Hard Money Loans For Beginners

Hard money loans are good for first time investors as a source for crediting, as more times than not, people in California begin their debt before they even begin their credit, this phenomena comes from the influx of student loans. This could be a good indication of the future success of hard moneylenders. This is usually the case with people who have bad credit or do not qualify for other credit lines or loans.

In our history, and even presently flipping houses (buying a “Junker,” fixing it up, and selling it for profit) has been very profitable, and a good source of making money. It is a market with a huge risk with such big investments but it can be very profitable. This is where hard money loans come in.

These property flippers or investors usually use the hard money loans to buy a property at a low price quickly! The importance of quickness is what makes a hard money loan different than any other loan. Investors sometimes need the money as soon as possible. Conventional loans or typical soft money can take up to 30 days to obtain. Investors are very attracted to our quick and fast delivery, of typically around ten business days. In the case of flipping houses, this is exactly what the investor is looking for. When a flipper finds the property they are interested in, they want their money fast, and sometimes their only option is a hard money loan, if they don’t want to lose the property. Sometimes the hard money loan can make or break a business or even a deal.

The way to make money in property flipping can be a very long project. This can depend on how much the property needs to be worked on. There are a lot of things to oversee before investing or flipping a house, money is obviously an issue. The “flipper” can constantly be asking themselves, “where is the money going to come from?” But, in a troubling financial situation, hard money loans are not a bad place to turn.

Hard money lenders do get a higher interest rate but the risk they take usually overshadows that. Meaning the high interest rate is worth what you are getting. And most people are fully aware of the higher interest rates, and still do turn to this option. In most cases it is their only option. The higher interest rates are given as security though, as those in need of these loans can have potentially bad credit or none at all. Which is a big risk for the company. In the brighter picture it has been proven that hard money lending can save a clients property or be the difference between losing or creating jobs on a site being developed.

The Best Kept Secret In Commercial Loans

The US Small Business Administration (SBA) offers a special loan program for small business owners. Keeping in pace with the modern technology and the need for a consumer based business solution, the SBA now offers great user friendly services to all small business owner who want to actually develop their business for improved gains.

The SBA has set aside a nearly $24 billion budget for its SBA 504 loans which is made use of for this one purpose alone and that is to serve and help small business concerns. These dynamic loans and many people are yet to be aware of its value because of faulty or outdated information that is doing its circle among the knowledgeable lenders.

Slowly but steadily entrepreneurs like brokers, franchisers and accountants are placing their trust on the 504 loans and they are now aware that this loan is designed just in time to suit their needs in the marketplace. Compared to any private sector financiers the 504 loans are much better in the way that they offer long term, below market and fixed financing rates. These loans are highly beneficial and least expensive. Long term mortgage plans are for 25 years and SBA bond has also not increased in the last 20 years.

In order to waiver the balloon payments and loan fees online conventional methods are used. Last year alone nearly $14 billion was forwarded as capital investment for nearly 9,720 small businesses all over the US. These loans also created jobs of about 112,000 as the small business owners invested in the equity savings. 504 loans provide cash flow sensitive lending and capital preservation, which directly helps the small business owners to expand their business more quickly.

The state federal department is in charge of the 504 loans and it is one of the highly ranked domestic programs used for economic development and the growth of its funds is increasing at 22 % a year since 2000. There is no limit or cp to the lending amount for these loans and non public businesses running for profit alone are granted these loans. There however three financial standards set for the loan qualification of small business concerns.

Any business concern, whose net worth in under $7 million is qualified for these loans. The operating net income for the two previous months must be an average less than $2.5 million every year. The third qualification criteria are that the borrower should not have liquid non retirement assets more than the amount to be financed. Based on these qualification specifications nearly 98% businesses in Florida have been qualified for these loans.

Anyone with franchising license or a track record can apply and get qualified for the loans. Even service professionals like the doctors, accountants and lawyers etc also apply for the 504 loans. The terms and condition are easy and uncomplicated and every small business man should first consider applying for these 504 loans before setting eyes on other private loans which are costlier and more complicated.

Steps To Commercial Business Financing Options

Business financing options are provided by a number of non bank specialized finance companies in Canada. They provide an array of corporate solutions, all of them different but still allowing you to achieve cash flow and working capital goals. They are in fact, the answer to.. you guessed it ‘ no bank financing’ conundrums.

The challenge for business owners and financial managers is to identify and execute on who those sources are and what they can do for your company. Many companies, and industries in fact have specialize needs.

When you think of the right type of business financing for your company it’s important to think of senior and junior! What do we mean by that comment? Simply that a senior lender will want all the security on your business, typically handled by a document called the G S A – General Security Agreement. It then becomes a challenge to source other types of cash flow and debt solutions which can’t be monetized.

A good example of a senior lender is Canadian chartered banks. But when that source of capital isn’t available many firms these days choose asset based lenders, allowing them to drawn on various assets of their business but with more flexibility.

In some cases your business might need a ‘ bridge loan’ – they solve temporary capital shortages.. they are a ‘ bridge’ to future refinancing of your business.

Leasing companies are one of those specialized asset lenders that financing both new and used equipment, even software. While many firms think they are eligible for VC or private equity financing in fact they are poor candidates for that type of financing. Many owners and financial managers spend a lot of time and money going down the venture capital / equity path, only to find they are not ready for this type of capital solution.

Is there a bottom line? We think so, Simply that if you are looking for a commercial finance company for debt and cash flow solutions alternative non bank lenders are a great choice.

What types of financing can be achieved through alternative lenders? In fact they abound and business solutions are available in receivable financing, asset based business lines of credit, tax credit financing, sale leaseback strategies, franchise loans, receivable financing.. also known as ‘ factoring ‘, etc

Seek and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success when looking for a non bank commercial finance company in Canada.