Christian Hard Money Business Loans
Christian hard money business loans are considered non-conventional compared to other types of extensions for real estate or real property. A lender may grant the borrower equity funding if there is enough equity in the property to provide security. This type of financing normally includes higher interest rates but not because the borrower has bad credit. Hard money business allowances may include properties that are not in an ideal location or not in very good condition. Borrowers may have to present a realistic plan on how they will pay back the money on a deal that looks very risky to the lender. Some bankers allow a company to borrow dollars with other security collateral options. These may be based upon other assets or secure receivables the business owns. Other options that might be attractive to a small business owner are cash advances based upon future sales.
Hard money business extensions are a way that companies finance their operations on a short-term basis. A person may find that their company is failing and just needs a short-term solution or maybe a purchase is needed to keep operating. High interest rates help to guarantee the investors a return on their funding. Interest rates can be as much as double in comparison with other options. However, a company can pay the financial agreement off early and save dollars on interest. The interest charged is not usually based upon the financial history of the company or the owner's history but having good credit will certainly help with an approval if there is a question on providing funding. "Come, every one that thirst, come ye to the waters, and he that hath no money; come ye, buy, and eat; yea, come, buy wine and milk without money and without price" (Isaiah 55:1).
Online options that offer equity funding do not all use investors for funding which means that investors do not have to have final approval. Some have other sources such as their own capital and major banks. These types of hard money business extensions are easier to get an approval on and usually have a fast turnaround time. Getting preapproved through an online application makes the process even faster. Online applications are usually easy to fill out but for assistance most sites have instant chat with an account representative or they have a toll free contact number. Online applications through usually require the business name, phone number, email address, start up date, and the type of business.
Equity funding from major banks directly that does not require approval based upon debt to income ratios can be found on the Internet. These may be secured by notes and contract receivables or other types of assets. Difficult business notes can be easy to acquire if the borrower hooks up with the right investor. Equity funding notes are not anything like traditional business payment plans. They are short-term and can mature from a few months to as long as several years. Some bankers will even allow the borrower to pay interest for a certain period of time to bring the monthly payment amount down to get over a tight financial period.
Property that may be used for collateral with equity funding includes real property such as office buildings, commercial buildings, single-family dwellings, land, apartment buildings, and so on. Difficult business notes may require an appraisal of any property used for funding. Depending upon the value of the property bankers may approve monies for as much as 75% of the value of the property used for collateral. Some will approve funding for companies who are trying to sell. If the property is substantial but will not sell because it needs something or is not finished due to construction funds running out, a company owner has a good chance of borrowing the existing funds to complete construction so the property will sell.
Business owners often look into these options because they are designed to help keep a company from failing. Companies that need emergency monies where a property can be used as collateral are often eligible for. Companies that are having difficulty because their equipment has broken down or they have too much debt might want to consider finding an investor that offers equity funding or bridge notes. These basically serve the same purpose. They can provide monies for new inventory, better or damaged equipment, pay for marketing, expansion, and keep the company from going under. There are other options that can be found online including cash advance, economic development, and start-up.
Small businesses have another option that might be a better choice. Some investors allow a company to obtain a cash advance based upon their future sales. They offer unsecured small business allowances that are not difficult to get an approval for. As long as the company is doing well financially and has the potential for future sales, there is a good chance of being approved. Investors normally want the security of a percentage of future credit card sales to secure the dollar amount, but once the amount is paid back then the transaction is complete. Cash advances for companies do not usually require FICO checks or personal guarantees and are much easier to get approved for compared to traditional bank options.
Christian Hard Money Commercial allowancesWhile customers with hard dollar commercial notes focus on timing and opportunity, investors who provide funds for such ventures have many different ways to turn a profit. Clients turn to these options for a variety of reasons. Like other recipients of these funds, they may have a problem cash flow situation which is not attractive to either banks or sub-prime mortgage bankers. However, commercial clients are more likely to have problems with the sheer amount of dollars which is required to successfully run a commercial venture. These borrowers may need to act quickly in order to take advantage of a business opportunity which will not be available if traditional processes are employed.
Unlike participants in regular mortgage agreements, applicants for these options are not as strictly bound by their personal monetary situation. Lenders focus instead upon the value of the property which will secure the debt. If the borrower is unable to fulfill their end of the bargain, the investor is soon able to begin foreclosure proceedings. The property may then be sold to recoup the dollar losses. Therefore, the application process may not be as lengthy as that required by regular notes. Also, the purveyor of such funds tends to be willing to take more of a risk in extending credit to his or her customers. Therefore, there is more flexibility in the types of programs which may be offered.
Four general types of scenarios seem to dominate the hard money commercial allowance arena. Acquisition of property for commercial use, along with construction funding to renovate the property for commercial purposes is one common area where a note may be required. Few individuals have the money or credit situation which enables them to make such purchases or improvements on their own. Another area is debt and equity financing, which is available for those in difficult financial situations. Short term bridge extensions are another form which these options may take. These allocations enable the customer to move ahead while waiting for his or her primary extensions to be established. There are also plans which may aid in rescuing a floundering project until it can stand on its own feet fiscally, or at least buy some time in order to keep investors from experiencing a total loss if the property must be resold.
The rates and programs for these notes depend on the type of property, the terms of the note and the borrower's general financial situation. Commercial projects may include money for acquiring or improving land. Construction projects, retail space or office parks, warehouses or self-storage businesses may be the result of such plans. Monies may also be provided for restaurants, hotels and condo conversions. Sometimes projects with mixed commercial and residential use are included. Unique properties for special use may get plans which would not normally be available from regular investors who may be bound by stricter guidelines or regulations.
However, the freedom to dispense dollars more readily comes with a price, quite literally. Interest rates will be quite a bit higher than those imposed by traditional means. Additional points may also be imposed upon the person. These terms are not surprising, given the amount of risk that these investors take upon themselves. Some borrowers are all too willing to put up with the additional costs in order to remain solvent or to accomplish needed expansion for a growing business. Those who provide these amounts are generally able to be more flexible in making payment arrangements and offering options to those who are in difficult situations. This is because they usually have a significant amount from private investors already assembled, and also have the means to service their plans themselves, which increases profit margins.
It is no doubt in the bankers best interest to continue a relationship with the individual rather than seek foreclosure proceedings. This way they do not have to go through the time and expense involved in foreclosure proceedings or reselling the property. Either way, bankers would probably make a profit when setting up the arrangement. This is because they are careful to arrange the allowance to value ratios so that a profit can be made even if the property must be foreclosed.
The terms of these options are usually short. A one-year plan is common, although extensions up to three years are not unusual. On the other end of the contract, Christians need to watch out for exit fees, which are sometimes imposed even if the terms have been faithfully completed. Prepayment penalties may be stipulated for those who want to repay the amount earlier than required. Before entering into an agreement, be sure to read the terms carefully and ask for clarification on any matters which raise questions. Another pitfall to avoid is the extremely large fee which may be imposed on those who are late on their balloon payments. Since a great number of borrowers fall into this category, it is necessary for the borrower to carefully consider whether he or she will realistically be able to make the larger payments when the time comes. Do not be presumptuous by assuming that the future will bring only increased financial means to repay debts. As James 4:13-15 states, "Go to now, ye that say, To day or to morrow we will go into such a city, and continue there a year, and buy and sell, and get gain: Whereas ye know not what shall be on the morrow. For what is your life? It is even a vapour, that appeareth for a little time, and then vanisheth away. For that ye ought to say, If the Lord will, we shall live, and do this or that." A sense of humility and dependence upon the Lord will bear interest in quiet confidence in His ability to provide for all needs, whether they be physical or spiritual.