What is Hard Money Equity Loan?
If you are unable to get financing for your business via traditional banks, you can consider hard money equity loans for the purpose. These loans are provided by independent lenders against collateral and are a means to get the cash flow within a short span.
How Hard Money Equity Loans Work?
The lender requires proof that you will be able to repay him. Thus, he takes a look at your credit score and fixed income before approving your loan. Those with a good history of loan repayment get approved quickly.
You can take the cash from the lender up front and then decide on a fixed monthly payment you will make. The interest rate is set, and thus when you make your monthly payment, the loan balance is reduced and some of the interest cost is covered as well.
If you fail to pay your installments on time, the lender has the right to sell your collateral to recover his money.