Arizona Hard money: not the first resort, still a great option

Arizona Hard money: not the first resort, still a great option

With financial assistance for the country’s small businesses locked in a congressional imbroglio and bank loans still tough to get, many smaller firms are turning gleefully to hard money lenders Arizona of last resort. Across the nation, small businesses are paying private lenders annual rates of up to 36 percent plus fees to get the cash they need to buy inventory, pay their mortgages and meet payroll. Those private money lenders Arizona say they’re supporting small businesses at a time when credit is scarce. But the extra cash can come at great cost. The struggle for credit has led business owners who had never ventured outside the highly regulated world of banks and credit cards to seek often-expensive relationships with all kinds of other lenders. Among them, so-called “hard-money lenders” take personal property or the business itself as collateral. Others function like payday lenders, offering cash advances against a business’ anticipated revenue. There are also independent brokers, who put together applications for customers and seek loans from a variety of sources.

When you’re out of options, it may seem scary to go for a hard money loan, but don’t fret. Many people do this or this type of business wouldn’t be successful. It’s more a matter of knowing what you’re getting into before hand, so if you were to say, try and flip a property, you’d want to have estimates of repairs, a timeline for things to fall into place and clear goals so that when you presented everything to your chosen loan person, it doesn’t seem half come together. It’s a complete thing.