As a small business owner, you know how tough it can be to get affordable financing from traditional lenders. Endless paperwork, excellent credit, and a mountain of collateral—the hoops you must jump through are endless!

But what if you could tap into your home’s equity to fund your entrepreneurial dreams? Enter owner-occupied hard money loans, a groundbreaking lending solution that puts your residential property to work growing your business. Let’s explore how owner-occupied hard money can boost your small business’s journey!

What Are Owner-Occupied Hard Money Loans?

A hard money loan is a type of financing where a private lender (instead of a bank) provides capital to a real estate investor or property owner. The “hard” term refers to the loan being secured by the actual property you own. An owner-occupied hard money loan specifically applies when:

  • The property securing the loan also serves as your business’s operating location.
  • You own and live on this residential property while running the business.

This makes owner-occupied commercial loans useful for entrepreneurs operating home-based businesses or small businesses located within a residential property, like a multi-unit building.

Key Benefits for Small Business Owners

Owner-occupied hard money loans provide several excellent advantages that are highly beneficial for small business owners:

Faster Access to Cash

Owner-occupied hard money loans allow for much faster access to cash than traditional loans. Approval and pre-qualification happen in just days, not weeks, like traditional loans. Once approved, funding is typically provided in under two weeks. You can bypass the mountains of paperwork and stringent requirements of big banks.

Use Residential Property as Collateral

With owner-occupied hard money loans, you can leverage the equity built up in your home that you currently live in as collateral. The property does not need to be zoned or approved for commercial use. This allows you to access financing using an asset you already own.

More Flexible Qualification Requirements

Hard money lenders look at alternate data points beyond just credit scores. They prioritize the amount of equity in your property over a perfect credit history. Self-employed individuals, new businesses, or those with recent financial hiccups can still qualify.

Expand Business Opportunities and Grow Operations

Owner-occupied hard money loans provide a lump sum of funds that can be used for various growth initiatives, such as purchasing inventory, hiring staff, launching marketing campaigns, and more. This prevents you from missing out on revenue opportunities or strategic investments due to a lack of capital. The influx of working capital allows you to seize opportunities to scale rapidly.

Your Home’s Equity, Your Business’s Future

Getting pre-qualified for owner-occupied hard money is an easy process. Most hard money lenders only require basic income documentation, your credit score and history, and details about your residential property being used as collateral. This streamlined approval process allows small business owners to quickly unlock the value in their home’s equity and deploy it towards strategic growth initiatives.

Owner-occupied hard money loans work exceptionally well for a wide range of small business owners and entrepreneurs operating businesses like retail stores, restaurants, professional service firms (consulting, legal, medical, and more), e-commerce or home-based internet companies, and skilled trade providers such as plumbers, electricians, and contractors.

Don’t let inadequate business funding hinder your success! Let ARC Private Lending be your compass in the world of hard money loans. Contact us today to begin exploring tailored options for your business.