Hard Money as a Bridge to Standard Financing

Other uses for hard money

Despite hard money lenders seemingly having a penchant for investments and real estate deals, there are many more uses for hard money loans. For example, we sometimes serve clients in need of bridge funding while they pursue standard financing for their projects. We are happy to do so.

Hard money structured as a bridge loan is often an ideal short-term funding solution that can then meet immediate needs during the time it takes to secure a small business loan, private equity funding, etc. It is a tool we use to help clients get deals done quickly and efficiently.

Purchasing Investment Property

A good example of hard money acting as a bridge to standard financing is purchasing an investment property. In the past, we helped a client complete a property purchase after his bank backed out at the last minute. The client’s intention was to utilize standard financing all along. It wasn’t his fault that the bank deal fell through.

He came to us because time was of the essence. He still planned to pursue traditional financing, but he could not wait on completing that process to close the deal. Had he tried, he likely would have lost the property. We provided funding that allowed the deal to close on schedule. We gave the client time to seek out traditional financing to repay our loan.

In essence, hard money from Actium Partners was the bridge between a bank that changed its mind and a new lender who came in later to provide funding. The bridge enabled our client to stick to his plans.

A Variety of Practical Uses

Purchasing investment property is just one practical use for bridge funding. There are many others. You might be in a position of having to make good on an existing debt that needs to be fully repaid within a short time. You would prefer to obtain new financing rather than restructuring your debt. We can help. While you search for a new lender, a bridge loan from Actium Partners facilitates settling up with your current creditor as scheduled.

We have had clients utilize bridge funding to grow and expand their businesses. We have had others use it to take care of debt and obligations. The key to successful bridge funding, in nearly every case, is the collateral used to secure the debt.

Traditional Financing Takes Time

Traditional financing serves a vital purpose to those who use it. Its primary downside is that it takes time to arrange. Banks and some private lenders utilize approval processes that can take weeks to complete. Some even take months. Clients looking to obtain bridge funding from us generally don’t have that kind of time.

We see hard money structured as bridge loans as a way of helping our clients achieve short-term financial goals so that they can pursue long-term financial needs. We see what we do as a way of coming alongside our clients to assist them in doing what they need to do while they wait on their banks to do what they have to do.

Another advantage of hard money as a bridge to standard financing is that it buys client’s time. They do not have to rush through the process of finding a traditional lender that they can work with. Our loans give them time to compare lenders, interest rates, terms, and so forth. This affords them the opportunity to find the best possible offer without having to jump at the first one they see.

Can bridge funding from Actium Partners help you as you search for traditional financing? Contact us and let’s talk about it.