Hard Money Loans for Your Business
Financing a startup or business when your credit history is non-existent, or your credit score has taken a few hits can be an uphill battle. While you’re waiting to build your credit and get finance, opportunities for growth are slipping through your fingers.
Fortunately, there are alternatives to conventional financing that allow businesses to secure funding quickly and efficiently despite poor credit. One of those methods is using a hard money loan for your business.
What are Hard Money Business Loans?
Hard money loans are an alternative source of business financing. They are easier to secure than conventional loans because lenders use the commercial real estate of the business as collateral. This makes hard money loans an excellent option for companies with poor credit or startups without a credit history.
Hard money loans come with much less red tape because the lender is reassured by the security that comes with collateral. If you can’t pay back the lender, they can claim the asset to recover lost funds.
What Qualifies you for a Hard Money Loan?
As stated above, qualifications for hard money loans are not based on credit scores. Rather, collateral is used to secure the loan. However, the value of the collateral is based on a calculation called loan-to-value ratio (LTV).
LTV represents the potential risk to the lender in the form of a percentage. The higher the rate, the greater a lender assumes their risk to be. For example, if the commercial property you put up for collateral is valued at $2,000,000, a lender is not going to issue a loan matching the total value. Instead, they will typically lend you 60% of its value, or $1,200,000. This 60% calculation is the LTV.
Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.
Hard Money Loan for Business Example
Imagine that company XYZ wants to finance the purchase of a commercial building valued at $4,000,000. The owner of XYZ needs a loan to complete the purchase, but he has poor credit because of his former business partner’s mistakes, and this is an excellent real estate opportunity that needs to be closed quickly.
Since the owner of XYZ cannot qualify for a traditional bank loan and doesn’t have the time to wait for a traditional bank loan, he finds a reputable hard money lender and offers to put a $1,600,000 down payment on the property in return for a $2,400,000 hard money loan to be paid back in 12 months.
Is a Hard Money Business Loan Right for You?
If you cannot secure financing through conventional methods but believe you can grow your business with proper funding, then a hard money loan may be a solution for you. They are easy to apply for, and the loan proceeds comes quickly if there is sufficient equity in the property your are purchasing or refinancing.
The interest rates on hard money loans are higher than conventional loans, but hard money loans are designed to be short-term, so the higher interest rate is usually offset by the potential gain the real estate or business transaction, and the payments are interest-only.
Finding a hard money loan suited to your needs begins with contacting a lender with a long track record of transparency and funding loans quickly.
At Wilshire Quinn Capital, we have provided rapid and reliable funding to borrowers since 2011. We have since become one of California’s premier hard money lenders. Contact us today and find out how we can help you reap the benefits of a hard money loan the right way.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
Interest Rates from 7.5% to 11%
Loan Term: 3 – 24 months
Commercial & Residential (non-owner occupied) Real Estate
- Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
Foreign National Loans Available
About Wilshire Quinn
Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.
Recently Funded Hard Money Loan Transactions
LOS ANGELES, CA
Loan Amount: $16,025,000
Loan Type: Blanket Refinance
Property Type: Hospitality
Term: 12 Months
Loan Amount: $2,520,000
Loan Type: Purchase
Property Type: Assisted Living
Term: 12 Months
LOS ANGELES, CA
Loan Amount: $10,675,000
Loan Type: Refinance
Property Type: Parking Structure/Retail
Term: 12 Months
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