Frequently Asked Questions
Q. What is a hard money loan?
A. Hard money loan is a term we use when a borrower can’t access the equity in a commercial property they own because of poor credit, poor cash flow, too little history, poor performance history. There is a reason why a mortgage lender or bank has said “No”. We have lenders that can say yes! We structure the loans as a bridge loan, which means, short term 12-36 months & interest only. Our customers need this at times to help reduce monthly payments, access equity in a property for their businesses or perhaps to consolidate other debt using the equity in their property. This interim step is used to correct the reasons our clients were declined by the bank, giving them the time to improve profitability, improve credit ratings, consolidate debt, or pay back taxes. Whatever the reason doesn’t matter to us…. we are more concerned with the value of the real estate.
Q: Why would I use Alliance Commercial Credit Group instead of my private banking institution?
A: If your private banking institution is not giving you the service you feel you deserve, and you do not feel like dealing with the hassle of searching for another bank, then ACCG can do that work for you on a reasonable fee basis. We are here to save you time as well as money.
Q: My credit is not perfect. Is there a funding source for me?
A: ACCG works with both traditional financing through banks and alternative lenders. We will educate you on the options available for you. In the event we are unable to assist you after reviewing your business history, we will get you started in the right direction.
Q: I don’t really need funding, but I do need a better understanding of managing credit. Do you offer that? If so, what does it entail?
A: Managing credit and managing cash flow are synonymous terms in business. We recommend business professionals whom you can hire on a contract basis to do a cash flow analysis for your business. We can’t express enough how important it is for a business owner to learn how to manage their business from a forward perspective (cash flow budget) versus the rear-view picture given from standard financial statements (P&L and balance sheets). A cash flow budget is also the only way to identify potential losses before they happen. Managing cash flow will become a lot easier if these tools are available for you.
Q: We are a warehousing-type business with many outstanding invoices and a tight cash flow. My bank won’t help me. What are my options?
A: Assuming that accounts receivable are your only collateral, you have at least two options. ACCG would help to determine which financing you would qualify for and what the best possible rate would be based on your current financials, history, and how quickly the money is needed. We have funded businesses in as little as seven days from start to finish, although we prefer a longer timeframe to obtain the best possible funding for you.
