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What does Hard Money Loan Means?

A hard money loan is a loan type that is secured using real property as collateral. Many small business owners and hard money lenders rely on this type of loan as a short-term “bridge” type of loan instead of having to try getting a traditional loan from a bank.

Unlike traditional loans, a hard money loan uses the property as collateral and is not heavily influenced by the borrower’s credit report or credit score.

Additionally, a hard money loan comes from individual hard money lenders, not banks or other financial institutions.

A small business owner usually takes out a hard money loan in Denver to finance the purchase of equipment or repairs and renovations of business property.

These hard money lender loans are often more flexible in terms of the sum borrowed than traditional loans, as banks usually work with large sums of money when it comes to lending.

Pros and Cons of Hard Money Loans Denver, CO

There are several factors that make hard money loans desirable when compared to traditional lending.

However, there are a few setbacks to think about when determining whether hard money lending is right for you.

Appropriate Situations for Hard Money Loans Denver

In many small business endeavors, a hard money loan would be a better option than applying for a traditional loan from a bank.

A hard money loan may be beneficial for the following situations:

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