Hard Money Lending is a new source of capital for small to medium size business borrowers involves little-known finance firms. Hard Money” refers to a category of loans that originally developed as an alternative form of loan of “last resort” for those seeking collateralized loans whoever wants loan money faster than banks mortgage companies can provide it with conditions.
Hard Money Lenders take advantage of time-sensitive opportunities; they tend to cater to their existing book of accounts. Their rates are much higher than a bank. But pay well worth when bank b cannot finance. “I tried several banks for a recent acquisition but untimely had to turn to a BDC for the capital I needed to get the deal done” say Harper. Yes they can be expensive says David Golub President of Golub Capital which manages a $417 million dollars in publicly traded BDC but BDCs can be much more flexible with terms and conditions and the speed in which we can commit to closing a deal.
My Hard Money School 