Many people become intimidated to apply for a loan is they are just starting their own business, as they assume they will be declined. Level 4 Funding shares how you can get approved for hard money business loans.
It’s important to leave intimidation (and ego) at the door. Seriously, about half of people that apply for loans get rejected for one reason or another, but that does not mean you are out of the game. Sometimes conventional lending institutions have stricter loan policies and therefore may not approve first-time business owners or borrowers. However, that’s no reason to give up, because there are plenty of other options out there when it comes to hard money business loans.
Next, you need to know the difference between a conventional long-term loan and hard money business loans, which are typically short-term. The former are typically done through conventional lending institutions like banks. The application process is typically lengthy and complicated. It also requires a lot of documentation on the part of the prospective borrower. The latter, however, does not require a long, drawn out application and approval process. Many loans are approved within a few short days, and the borrower can have money in hand, fast. This is a great benefit for those that are in need of money right away.
Hard money business loans are largely based on one major thing — collateral. While in the case of long-term lenders, you’d have to complete a lengthy application but also be prepared to provide credit score and history, a business plan as well as a breadth of personal and business financial statements and documentation. If you are prepared to put up some collateral to secure the loan, approval is likely in your future.
There are many benefits to these types of loans.
Getting through the process, quickly, easily and fairly painless is just the beginning. Getting your money fast is another benefit of short-term loans. They are also structured to only be between a few months and three years repayment terms, so once that time is up, you can be debt-free.
However, as with anything, there are two sides of the coin.
While these short-term loans are beneficial in many ways, there are some drawbacks that first-time borrowers should be aware of. For example, high interest rates are typically associated with this type of loan to mitigate the lender’s risk. Sometimes, there are “hidden fees” and charges that first-time borrowers might not understand. So it’s important to go through the application and agreement with a fine-tooth comb and ask questions when you need to. Remember, there is no need to be intimidated. Your lender is working for you, and for your benefit. He or she should be doing things in your best interest. A reputable lender will want to ensure he’s answered all your questions properly and gone owner any uncertainties you may have before moving forward with the loan agreement. If you are unsure of where to find a reputable lender who is there for you, call Level 4 Funding today.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701