Financial Articles

Funding a small/mid sized business (finding working capital, funding growth and development, or restructuring) is one of the most challenging tasks of a business owner. With venture capital nearly non-existent, and SBA loans harder and harder to come by, the average business owner would do well to consider hard money financing as an option.

Hard money financing is business financing which uses real estate as collateral. When a standard bank mortgage is inappropriate, hard money financing can be the answer. Several reasons why businesspeople turn to hard money financing options include:

• Speed – funds are needed in less than 4 weeks - bank financing takes too long. Hard money financing companies, such as Avatar Financial Group of Seattle, WA can fund hard money loans in 2 weeks or even less.

• Qualifications – Bank financial requirements differ from hard money financing company requirements. The value of the property, rather than the credit history of the borrower is weighed far more heavily with hard money financing companies.

• Property Type – Bank and traditional mortgage companies have a narrower range of property types they are willing to accept as collateral for funding. Hard money financing companies may fund based on properties such as gas stations, recreational facilities, and more.

• Specifics of the Deal – Hard money financing companies have more flexibility when considering the funding of a specific deal. Factors which may which may not fall within the funding parameters of a bank or traditional mortgage institution, such as the use of funds, size of loan, amount or type of credit history, type of property, ratio of equity to value, citizenship / residency status, etc. may not be impediments for hard money financing companies.
  
  Hard money financing is not strictly relegated to the use of business property as collateral for a loan. The flexibility of hard money financing companies makes it possible to use personal property, including a personal residence, as collateral. With personal or business property valued at $1,000,000 or more, depending on your equity in those properties, it is possible to generate a working capital loan up to $650,000 – or 65% of the value of the property (LTV).

• Hard money loans cost less at Avatar
  
  Avatar Financial Group is an institutionally funded REIT (real estate investment trust). We are not brokers. Since you will not have to pay additional points to brokers and sub-brokers, your hard money loan will cost less.

• As a direct hard money commercial lender, Avatar Financial Group funds faster
  
  Avatar Financial Group has the money to fund– we do not have to ask investors; we do not need to call around to funding institutions. Brokering a loan takes time. You can avoid that wasted time by going direct to Avatar, where hard money commercial lenders turn for funding.

• Avatar Financial Group makes it easy
  
  With Avatar, you know where you stand. We make the funding decision ourselves. If we express interest, you have the decision of the funding institution. We have nothing to gain by ‘stringing you along’ in hopes of finding a funding solution elsewhere. If your loan request fits our company. If we need more information or explanations, we will communicate directly with you. Direct communication is better communication and results in faster, more efficient funding.

• Working with hard money commercial lenders does not mean
  having to put up with harsh manners
  
  One of the most common complaints from borrowers who work with hard money commercial lenders/brokers is the service they receive. In an industry rife with rough manners and poor service, Avatar Financial Group enjoys a reputation for expertise coupled with civility, professionalism, and personal care. You'll find working with Avatar Financial Group a refreshing change from ‘business as usual.’

If you or your firm is interested in obtaining a quote for a hard money commercial loan, please contact Avatar Financial Group toll free at 888.896.0078 or 206.728.5900. We will review your request immediately and make a determination about funding your project and the costs involved without delay. There is no obligation; we are not brokers. If we move forward, Avatar Financial Group will be the funding source for your project.