How a Hard Money Lender Can Help a Small Business Buying Property
5 minute read
June 28, 2024


When you run your own company, obtaining a dedicated property for your business can be a strategic move toward growth and stability. However, the financial challenges involved in buying property for a small business can be daunting. 

Traditional financing options often have stringent requirements and lengthy approval processes, which may not meet a small business’s urgent needs. 

This is where hard money lenders come into play. By offering more accessible and faster financing solutions, they can be the ideal resource for a small business buying property.

Let’s Get Your Loan Started

The financial challenges of small businesses

Small businesses frequently encounter several financial hurdles when attempting to purchase property. 


Traditional lenders (e.g., banks) often have strict credit requirements and demand extensive financial documentation. 

Small businesses, especially startups or those with less established credit histories and financial history, might struggle to meet these criteria. 


Small businesses often need to act quickly to seize property opportunities, and waiting weeks or months for loan approval can result in lost deals.

Money down

Furthermore, traditional loans typically require substantial down payments, which can strain a small business’s cash flow and limit its ability to invest in other areas critical to its growth.

Understanding hard money lending

Hard money lending offers an alternative to traditional financing, characterized by speed and flexibility. 

Hard money loans are generally short-term loans secured by real estate

Unlike traditional lenders, hard money lenders weigh their approval decisions primarily on the value of the property being purchased and its potential profit instead of the borrower’s creditworthiness

Hard money loans offer higher interest rates and shorter loan terms, usually one to three years. These loans were developed to provide quick access to funds, making them ideal for situations where time is of the essence. 

Hard money lenders are often private individuals, allowing for more flexible terms and faster decision-making processes.

Benefits of hard money loans for small businesses

One of the most significant advantages of hard money loans is the quick access to funds. 

Fast approval

Traditional loan approvals can take several weeks, but the turnaround time for hard money loans can be mere days. This rapid processing is crucial for small businesses to secure a property quickly.


Hard money loans also offer greater flexibility regarding credit requirements and collateral. 

Since the loan is secured by the property, hard money lenders are more concerned with the property’s value than the borrower’s credit history. 

This makes hard money loans accessible to small businesses that might find traditional financing a difficult ‘needle to thread.’

Cutting the red tape

Moreover, the approval process for hard money loans is typically more straightforward and less bureaucratic. 

Hard money lenders focus on the asset’s value and the business’s plan for the property, reducing the need for extensive documentation and making the process more efficient.

Examples of hard money loans in small business property deals

Hard money loans can be beneficial for small businesses in various scenarios. Here are some common examples of loans completed by hard money lenders, like Marquee Funding Group.

Acquiring property for business expansion

When a small business is ready to expand, acquiring additional property is often necessary. 

When the right property comes up, you often need to act fast. Traditional loans often can’t match the time-sensitive nature of many property transactions. 

Hard money loans provide the quick access to funds needed to seize expansion opportunities without delays.

Purchasing distressed or undervalued properties for renovation

The right property may not always be in ‘move-right-in condition’ when you find it. 

Distressed or undervalued properties for renovation can benefit significantly from hard money loans. Properties that fit your business needs may require substantial immediate investment to make them viable. 

Hard money loans can finance the purchase and renovation, enabling businesses to turn around and use or lease the improved property quickly. 

Traditional lenders are frequently more hesitant to finance a larger project as part of a mortgage, preferring to keep to just the mortgage itself. 

Steps to secure a hard money loan

Applying for most hard money loans involves several steps:

  1. Initial consultation: Contact a hard money lender to discuss your needs and the property in question—the initial conversation helps determine if a hard money loan is the right fit for your situation
  2. Solid business plan: Prepare a detailed business plan outlining how you intend to use the property and generate income, which should include financial projections, marketing strategies, and an exit strategy
  3. Property appraisal: Obtaining a professional appraisal of the property is vital as hard money lenders use the property’s value as a major decision factor rather than your credit score
  4. Documentation: Hard money lenders typically require less documentation than traditional lenders, but having your paperwork in order can expedite the process—gather necessary documentation, such as:
    1. Proof of business ownership
    2. Financial statements
    3. Property details 
  5. Application submission: Submit your loan application along with the business plan and property appraisal for the lender to review and assess the property’s value and the overall proposed plan
  6. Approval and funding: If approved, the lender will provide the loan terms, which, assuming they are agreeable to you, means the loan can be funded quickly, often within days

Hard money solutions for a small business buying property

Hard money lenders can play a pivotal role in helping small businesses acquire property. 

Hard money loans offer a viable alternative to traditional financing. They offer quick access to funds, flexible terms, and a straightforward approval process. 

However, it’s essential to understand the risks and choose a reputable lender to ensure a successful transaction.

Marquee Funding Group has helped hundreds of businesses like yours

If you’re a small business owner looking to purchase property, submit your loan scenario to Marquee Funding Group for tailored hard money lending solutions. 

Our team is ready to help you navigate the complexities of property acquisition and secure the financing you need to grow your business.


More on Hard Money Loans