Commercial Hard Money Loans for Your Short-Term Capital Needs
Commercial hard money loans are a type of financing used by businesses in various industries to take advantage of opportunities or bridge gaps. As the name suggests, commercial hard money loans are typically given on a shorter timeline and with higher interest rates than traditional bank loans. However, they can be a valuable tool for businesses needing quick capital access. Hard money lenders will often look at the value of the property being purchased or renovated as collateral rather than the borrower’s creditworthiness. Commercial hard money loans are an option for businesses that may not qualify for traditional financing. Provident Commercial Capital can ensure you get the best terms possible if you are considering a commercial hard money loan.
Commercial hard money loan terms are usually shorter and given based on the property value rather than the business’s financials. This type of financing is a good option for companies that are in the start-up phase, have poor cash flow, or businesses that have been turned down for a bank loan due to insufficient financials.
Commercial Hard Money Loans
- Property Types:Multifamily, Mixed-Use, Office, Light Industrial, Mobile Home Parks, Self-Storage, Warehouse, Hospitality, Retail - value add opportunities
- Loan Amount:$500k - $20M
- Base Rate:8.99%
- Transaction Types:Purchase, Rehab, Rate/ Term Refinance, Cash-out Refinance
- Max LTV:75%
- Max LTC:85%
- Term Lengths:Bridge - Up to 36 Months
- Minimum FICO:500
Why Provident Commercial Capital?
Commercial Hard Money Loans Offer More Opportunities!
Commercial hard money loans are a type of financing that is typically used for investment opportunities that are not considered "performing." This means that the property or business doesn't have enough cash flow to cover its debt and other expenses. Hard money lenders will provide financing for these types of opportunities, but they typically charge higher interest rates than traditional lenders. Commercial hard money loans are an excellent fit for those investing in non-performing properties or businesses.
Commercial hard money loans are considered short-term financing. These loans are usually interest-only and for a six-month to three-year period because they are only intended to be a short-term fix. The investor or business owner can then secure long-term financing once the project is sufficiently cash-flowing, thus going from "non-performing" to "performing" status. Hard money loans are typically more expensive than traditional loans.
3 Easy Steps to Secure a Hard Money Loan
Hard money financing through Provident Commercial Capital is the solution.
Quick & Easy Application
Fill out our short online form today!
Get Approved FAST
We underwrite your file quickly and don't waste time on term sheets like banks.
As soon as we obtain the necessary documentation, we start the closing process.
Frequently Asked Questions
Commercial hard money loans are quick-closing loans for the short-term financing of commercial real estate properties such as offices, warehouses, and retail buildings. Rather than a bank financing the loan, the lenders are typically individuals or companies.
The main difference is that a hard money loan is short-term and a conventional loan is long-term. Commercial hard money loans are typically repaid within 6 to 36 months. Most conventional loans have repayment terms of 10 years, or up to 30 years. Also, closing the hard money loan request happens quicker than conventional loans.
Commercial hard money loans are useful when newer investors need immediate financing and are confident they will quickly receive additional funding from another reliable source. Securing a hard money loan can have a short turnaround time, meaning a borrower can get one fast to pay for an immediate opportunity.
The main advantages to hard money loans are that they often close very quickly and are based more on the value of the commercial property than anything else. The underwriting process tends to be easier and less rigorous than traditional loans because the lenders place more weight on the value of the property than on a borrower’s finances.
Secure your commercial real estate loan today!