Bad Credit - Mortgage

Bad Credit Home Loan
Bad Credit Mortgage
Bad Credit Equity Loan
Private Equity Loans With Bad Credit

A really good source of financing for businesses with bad credit is private equity lenders.

A private equity lender is a hard money lender who loans a business money in exchange for equity. Equity is a percentage of piece of the business that the equity lender gets in exchange for the loan. If they pay off the loan, the borrower gets this back.

Private equity lenders are willing to lend to businesses with bad credit because the loan is secured. That is they can seize part of the businesses assets  or foreclosure on its property if the loan isn’t paid. Private equity lenders are willing to take the risk of loaning to firms with bad credit because they can make money even if the loan isn’t repaid.

Disadvantages of Private Equity

The disadvantage to private equity loans is that the interest rates are usually much higher than those charged by banks or regular lenders. Private equity lenders are generally lenders of last resort, they loan you money when no one else will.

Another disadvantage is that private equity loans will have to be paid off fairly quickly. Private equity loans are often inflexible because the private equity lender is usually a hardnosed business person.

Advantages of Private Equity Loans

One big advantage of private equity loans is that the decision is made fairly quickly so the money may be available soon.

Another advantage is flexibility since the borrower is dealing with a private individual or company they may be able to negotiate changes in the loan if the situation changes. The private equity lender maybe willing to change terms, accept late payments or lower payments if the situation warrants.

How To Get a Private Equity Loan

Generally a business owner will have to prove that he or she has the cash flow to pay off the private equity loan. To get such a loan a business will have to have proof of cash flow such as bank statements or sales receipts. Businesses that don’t have the cash flow probably won’t be able to get a private equity loan.

How to Find a Private Equity Loan

The best place to find a private equity loan is online, there are dozens of websites that connect businesses with private equity lenders. Typing the term private equity loan into a search engine produce a list of websites that help businesses locate private equity loans.

When to Get a Private Equity Loan

A business should only get a private equity loan if the owner is confident that they will have the cash flow to pay it off in the time agreed. A business with a cash flow that fluctuates should probably avoid private equity loans because it may not be able to pay them off.