Looking to grow your business, but struggling to purchase the commercial real estate you need? Whether it’s your second location, your third, or you’re just looking for a way to expand your current business to better serve your customers, finding the financing you need can be quite challenging. The answer might be to use a hard money loan, rather than conventional funding.
What Is a Hard Money Loan?
Simply put, a so-called “hard money loan” is funding from a direct lender, rather than from a bank. This could be a single individual or entity, or it could be a group of individuals and businesses through a peer-to-peer lending platform. The loan is secured by a hard asset – such as the real estate your business already owns.
Because direct lenders are not banks, they are not required to jump through the same hoops as those financial institutions, and they are better able to serve your needs through innovative financing options.
Bridging the Gap
You can use a hard money loan in a number of different ways, including as a bridge loan to help ensure that you are able to secure the funding you need for commercial real estate. For instance, if your business currently does not meet bank requirements to obtain a commercial real estate loan, a hard money loan could be used to bridge that requirements gap.
How to Get Started?
In your quest to purchase commercial real estate with a hard money loan, you will need to take some specific steps. First, you’ll need valuable collateral – generally real estate. Second, you’ll need to find a hard-money lender to work with.
Contact us at Purevue Capital to learn more about how you can grow your business with a hard money loan.