You have a dream, you have a vision, but you have poor credit. How can a small business owner get a commercial mortgage with poor credit?
Many small business owners give up expanding their business because of their credit–it seems that it is too much of a long shot. In fact, one business owners receive dings in their credit many don’t even bother looking around let alone applying for finance due to that three-digit number looming over their head. Instead, they just try and keep their nose above water.
Can you get a commercial mortgage with poor credit? Yes. There is commercial financing for borrowers with bad credit. However, there are lenders out there that won’t focus on your credit. Seem to good to be true? It’s not. Although hard money lenders will look at your credit and finances, they are not solely focused on just those particulars. Hard money lenders use the property that you are purchasing as your collateral. Traditional lenders use your credit score and finances to feel confident about your capability of paying back a loan. Hard money lenders use the property as 100% collateral.
Many small business owners have run into financial problems in the last decade. Because of this many have been stuck and felt unable to upgrade and make improvements or expand their business. Improving and expanding take finances–and finance is hard to obtain with poor credit.
Small business owners with poor credit face limited options when it comes to commercial real estate financing; it would be wise for small business owners to consider hard money lenders. In commercial real estate financing, hard money lenders are known for worrying less about a borrower’s credit score and more about the value of the proposed property obtaining financing. While the terms on a hard money loan may have a higher interest rate than that of conventional commercial mortgage, borrowers generally won’t be turned away if they don’t have a stellar credit score, as long as the property has value.
There are even more benefits for small business owners when it comes to hard money loans.
Generally, hard money loans close much faster than conventional loans. Borrowers are typically approved within 48 hours and have their funds within a week to ten days. In times where an investor needs quick money to purchase a property a hard money loan should be considered. Terms are much more flexible and are shorter than conventional loan terms. Unlike traditional lenders who have a team of numerous people working on a borrower’s application, hard money lenders are able to work on more personally with the borrower. Because these are private investors a borrower can have a real relationship with their lender. These lenders base terms on an individual basis; meaning not all loan terms are alike.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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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