Hard Money Loans

Many business borrowers do not prepare adequately for the commercial mortgage business loan problems that are common in most business financing scenarios. By anticipating typical commercial loan difficulties, business owners are more likely to avoid potentially disastrous business finance consequences. With rapidly deteriorating financing for residential investment property, overcoming business loan and commercial mortgage [...]

One of the most serious working capital financing scenarios is a lender that causes difficulties for their small business commercial borrowers on a regular basis. It is specifically this kind of commercial lender which informed commercial borrowers should be prepared to avoid unless realistic alternative options for commercial loans and commercial mortgages are totally impractical.

Commercial loan borrowers are likely to feel that a traditional bank is their best source for commercial financing. However, because most traditional banks focus on a small number of established industries and offer limited business financing services (which are typically the most profitable for them), non-traditional (non-bank) and non-local commercial lenders should be considered for most commercial loan situations. Therefore the recommended commercial loan strategy is to “Think Outside the Bank”. This approach is especially applicable for credit card loan (business cash advance) programs, commercial real estate loans and credit card processing services.

This commercial loans report is designed to help educate new commercial investors about important business finance loan issues. Since more investors are exploring opportunities involving business loans, it is vital that they have an early introduction to the many critical differences between residential real estate investing and commercial property and business opportunity investing.

Retainer fees are “standard business practice” for some (but not all) commercial loan situations. It is understandable that a commercial borrower would rather not pay such a fee, so it is important for a commercial borrower to understand when it is more likely to be necessary. This article discusses when a retainer fee is appropriate for a business loan and how much a business borrower should expect to pay when a retainer fee is required.