| If you are starting up a new business or wanting to | | | | Many private lenders will lend their own money for |
| expand an existing one, chances are you will need | | | | their own portfolios. These lenders are generally |
| financing. Whether looking to buy property, machinery, | | | | funded by hedge funds or wealthy individuals with |
| material, or other high cost items, getting the financing | | | | large pools of capital. The breakdown of the |
| to do so can be tough in today's economic climate.You | | | | collateralized mortgage bond market has not crippled |
| will find this to be especially true when trying to go | | | | these unique lenders. Originating loans is not an issue |
| through a traditional bank. Even if you are able to get | | | | for them because they don't have to worry about |
| the funding that you're looking for, you will be waiting | | | | who may or may not want to buy them. Another |
| for months before the loan finally gets funded. In the | | | | benefit to private loans, or hard money loans is that |
| recent past, the number of borrowers that have | | | | they take a very short amount of time to close, as |
| defaulted on their loans has risen drastically. For that | | | | opposed to conventional loans which often take a few |
| reason, banks are being much more cautious before | | | | months to fund if you are even able to get the |
| financing any business venture. They are going to be | | | | approved. You generally don't have to worry about a |
| very picky when they do credit checks. If there are | | | | loan committee or huge stacks of paperwork. There |
| any issues, they are going to be quick to turn you | | | | are no complex ratios to deal with either. If they like |
| down. | | | | your deal and you have shown them that you can pay |
| Fortunately there are still options for getting financed. | | | | back the loan back, then usually they will close your |
| Due to the banks refusing to provide funding in today's | | | | loan no matter how things are going in the conventional |
| economy, a lot of loans are being privately funded. | | | | marketplace. |