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When it comes to small business loans there are a variety of different individuals and organizations that are willing to lend–one of those options is hard money.

It’s not that difficult to get a small business loan–if you have the qualifications and the credit. Into the picture steps hard money. Business owners with poor credit or a small amount of time in business have an opportunity for financing through hard money. These hard money loans are practical for business owners who don’t meet the strict qualifications of a traditional lender. What exactly is a hard money loan and how does it work?

Hard money small business loans are backed by the business’s commercial real estate as collateral. It is common for start up businesses to look towards hard money loans due to the ease of approval. Hard money loans are not specific to business loans; in fact business loans are only a small percentage of the loans financed. Hard money loans are made against the value of a collateralized asset. This helps business owners with poor credit. These loans are not based on a borrower’s income and credit worthiness. Hard money lenders will base loan amount using a loan-to-value ratio (LTV). The LTV is a percentage of the property’s value. Typically, hard money lenders lend around 70% of the value of the property that is used as collateral.

There are a multitude of benefits of hard money business loans. They are easier to qualify for and  the application process is simple. Most business owners are approved within a day and have funds within a couple of weeks. However, keep in mind you have to show that there is sufficient collateral value to offer the lender– that is key. Conventional business loans are a huge pain to deal with. The application process itself is torture and most borrowers don’t hear for weeks about approval. Because hard money lenders aren’t banks they are able to be flexible when it comes to repayment schedules. Hard money loans are interest only loans; meaning the monthly payment will be interest only and there will be a balloon payment at the end of the loan. It is critical the business owners pay attention to the payment schedule and understand the process.

Hard money loans are short-term loans. These loans generally run from one to three years. However, there can be shorter or longer terms. Again, because of the flexibility allowed to lenders they can work with the borrower to arrange a loan that will work for them.

Hard money small business loans are a wonderful alternative for business owners who have found themselves unable to qualify for a conventional loan.

Generally, hard money lenders will lend about 70% of the value of the property. What that looks like is that a property is appraised at $250,000. The project the business owner needs to take a loan out for costs $125,000. Seventy percent of $250,000 is $175,000; more than enough for the owner to complete their project. Borrowers many have to go through a few hard money lenders to find the one that works best for their situation.

      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:  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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