Here’s What You Don’t Need for Hard Money Loans

Anyone who has turned to Actium Partners after getting nowhere with a bank understands that there are distinct differences between bank loans and hard money. Those differences extend far beyond lending here in Salt Lake City. They permeate throughout the entire global banking sector.

Convincing a bank to make a business loan is like pulling teeth. You have to present a truckload of information and then jump through hoop after hoop just to get a loan officer to look at your application. The same is not true for hard money loans. To illustrate the point, here is a list of things you will not need to bring with you when you apply for a hard money loan with Actium:

A Business Plan

It is not unusual for banks to require a copy of a company’s business plan when reviewing a loan application. They want to know what a company does, at least in a general sense. They expect to see a standard business plan that summarizes what the company does, what products or services it offers, how it handles financials, how the company is marketed, etc.

Hard money lenders do not ask for business plans because these are largely irrelevant to what we do. We lend based on asset value. You believe in your business; that’s good enough for us. We don’t need to see a document that only offers a general description of how you intend to run your business. Our concern is the collateral you are providing.

Personal Credit Report

As we are concerned about the collateral value, we do not pull a personal credit report on borrowers or guarantors. You can apply for a loan with Actium and not be worried about an inquiry decreasing your credit score.

Business Financial Details

Some hard money lenders do request to see at least a basic summary of business financial details. But it’s not nearly the amount of information that most banks require. Your typical bank will leave no stone unturned where business financials are concerned. They want to know about all existing bank accounts, investment accounts, past and present loans, etc. They also want supporting tax information. We are focused on the collateral provided.

Receivable and Payable Information

Your typical bank also wants detailed information on accounts receivable and payable. Where receivables are concerned, they want to be able to check the credit histories of those companies that owe you money. That means they are not just checking your company’s credit worthiness – they are also checking the creditworthiness of your customers.

There are many other things banks ask for that hard money lenders do not. All in all, applying for a hard money loan is a lot easier. It is a lot faster too. What makes hard money lenders different is that we focus on collateral instead of information. If you have the collateral to support the loan you are requesting, things will generally work out fine.

If your company is in need of hard money or bridge loans, don’t torture yourself by going to a bank. Instead, consider approaching Actium Partners. We lend in Utah and beyond.