Every now and then, you may need a loan in order to meet a certain need. There are many options available to choose from, and the best one for you depends on a number of details and factors. However, keep in mind that some solutions will be better than others, so you should give them more consideration. One of these solutions is a hard money loan. Here are some reasons why you should approach hard money lenders over conventional lenders.
You Get the Money You Need Faster
Unlike loans from financial institutions which need a trail of paperwork and go through a long process, hard money loans are faster to process. This is because hard money lenders make their decision based on the liquidation value of the collateral that they’re provided with. They also don’t have to pass information from one point to another in a long line to seek approval and such. This means that you can get the money that you need fast. In fact, according to Rocket Mortgage, hard money loans can typically be processed in seven to eight days.
The Term Structures Are Flexible
Another difference that hard money lenders have from conventional lenders is the flexibility of term structures. Financial institutions rely on a one-size fits all approach because it’s not easy for them to make drastic changes as far as their services go. The terms of repayment and release of collateral can be structured by hard money lenders in a way that’ll benefit both parties. This makes them a great option for many businesses and individuals in need of money.
There Are No Prepayment Penalties
Finally, unlike the case with traditional financiers, hard money lenders typically have no prepayment penalties. These include penalties for paying back the loan too early, either in part or in full. Private lenders, on the other hand, are willing to listen to you and work with your circumstances in order to get you the best outcome. If you enjoy success and you’re able to repay your loan in full, then there’s no reason why you should keep waiting to give the money back if you borrowed from a hard money lender.
Clearly, a hard money loan may be the best option for your business or needs. Consider getting one and you’ll be blown away by the speed and transparency of the process. Get in touch with us at GW Private Capital today to get started.