January 7, 2019
How Hard Money Lenders Help Save Suffering Businesses
January 7, 2019


 As a small business owner I can promise you that finding funding from a traditional bank can be extremely difficult.

Banks have always been very reluctant to lend to small businesses. In fact, the small business loan approval rate is less than 25%—that means over 75% of small business owners that apply for small business loans are turned away. When I needed funding and was turned away from my credit union and another national lender I went to see a private lender.

Most small businesses are able to obtain loans through Arizona private money lenders. In fact, the demand for private business lending has skyrocketed so heavily that they are not difficult to find anymore. Private money lenders in Arizona usually specialize in certain financing—others have many niche markets.


Unlike a bank, where you are inundated with documents to send, documents to sign and documents to return—and then the documents they send back to you and return once again. This underwriting process can take months, and with only a less than a 25% chance of being approved— is it even worth your valuable time. The application process with private lenders is much quicker—business owners can be approved with a day and receive funds within days. When you are running a business you don’t have time to wait for your money.

Bank terms are solely based off of your credit history. As a small business owner myself, I know that many times owners can run into financial difficulties, especially in the beginning stages, and your credit can be effected. Unlike banks, private lenders are more understanding of market trends and can tailor their loan terms based on their own judgement.

There is a potential for higher interest rates on private loans due to the risk the lender is taking. These are asset-based loans—meaning the amount of the loan is based on the collateral you can offer the lender. Typically, it is not the entire value of the collateral that is considered—instead it is the loan to value ratio that is considered for the loan. The loan to value is simply a percentage of the property’s value. The loan value is the appraised value of the property. Typically, Private money lenders in Arizona loan up to 65% of the value of the property—but it is not unheard of them to finance even higher. This is how the lender assesses their risk in the loan.

If you are looking to open a franchise or your business is not in a position to qualify for a traditional small business loan, private money lending is an avenue you should seriously consider.

Other than the slightly higher interest rate attached to private money loans all other aspects of private money lending are easier and quicker than traditional loans. These loans are based almost completely on the collateral of the small business owner and funds can be released quickly. If your business is in need of funding, and you have found yourself discouraged with the banks, it is time to begin your search for private money lenders.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg


Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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