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Are You Considering Hard Money Business Loans?

Let's first agree on the definition of hard-money business loans before we move any further. Hard money business loans, in general, are usually secured by real property. 

We define a hard money loan to be a source of funds that are invested in a business, and the lender is not typically concerned about how the funds are applied. 

To get a hard money business loan, you can visit

Universal Commercial CapitalBusting myths about hard money loans - Universal Commercial Capital

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Lending criteria for hard money loans are primarily based on the equity in real estate:

These are typical characteristics: 

1) Private lending sources 

2) Short interest terms of one to three years 

3) Upfront fees on closing

4) Short in duration 

5) Use of funds, not a focal point 

6) Limited number of debt covenants, if any, and 

7) Interest-only payments are quite common

8) Failure to pay results in the sale of assets to retire the debt

Although hard money lenders can be criticized, they have a real and important role in the commercial finance market:

  • Hard money loans are generally easier to apply for than conventional loans of comparable size.
  • Hard money is often less expensive than cash flow financing options like factoring and subordinated debt.
  • These funds can be used as a bridge loan and are usually only available for a very short time. The lower the cost, the better.
  • Even at a high-interest rate, an interest-only payment can be less draining on cash flow.
  • Hard Money can be extended against assets other than real estate, provided that the principal security for the loan is still real estate.