In the competitive world of business, securing the necessary funds to fuel growth and expansion can be a daunting task. However, for a consumer products company based in Monticello, NY, the path to success became clearer with the closing of a hard money loan.
Scenario:
The hard money loan obtained by our consumer products company served two crucial purposes: refinancing an existing mortgage and providing working capital to the business. By consolidating its debts and injecting fresh funds into its operations, the company was able to streamline its financial obligations and focus on driving growth.
Collateral:
To secure the hard money loan, the consumer products company offered their industrial/office property in Monticello, NY as collateral. This property, with its strategic location and potential for future development, provided the lender with confidence in the loan’s security.
Term and Loan-to-Value Ratio:
The hard money loan came with an 18-month term, allowing the company ample time to execute its growth plans and generate returns. Additionally, the loan-to-value (LTV) ratio of 46% ensured that the lender’s risk was mitigated, as the loan amount was well within the value of the collateral.
Benefits of a Hard Money Loan:
1. Speed and Efficiency: Unlike traditional loans, hard money loans are known for their quick approval process and minimal paperwork. This allowed our consumer products company to seize opportunities without delay.
2. Flexibility: Hard money loans are often more flexible than conventional financing options. With the ability to negotiate terms and customize repayment schedules, the company was able to tailor the loan to their specific needs.
3. Credit History Independence: Hard money loans focus more on the value of the collateral rather than the borrower’s credit history. This provided our consumer products company with a lifeline, even if they had faced credit challenges in the past.
Closing a hard money loan proved to be a game-changer for our consumer products company in Monticello, NY. By refinancing their mortgage and injecting working capital into their business, they were able to navigate the challenges of growth with confidence. The secured industrial/office property, 18-month term, and favorable LTV ratio further solidified the success of this financial solution. If you’re a business owner seeking a flexible and efficient funding option, a hard money loan might just be the answer.
