|Financially Reviewed by Somer G. Anderson|
|At a glance — Hard money business loans are ideal for companies that do not meet the minimum requirements needed to secure more conventional funding opportunities.|
Insights Into Hard Money Business Loans
Hard money loans are business loans that are not solely based on the applicant's creditworthiness. Typically, businesses will select this type of financing as a last resort when traditional loans are unattainable or too costly due to bad credit or a high loan-to-value ratio.
Traditionally, banks do not offer this funding type because it is not regulated by the Federal Reserve, making these transactions risky. Nevertheless, hard money loans are a great option for businesses dealing with emergencies or those looking for swift processing times and fair interest rates.