Unsecured Lines of Credit

Most people who are looking for funds for renovations, additions, business expansion, or other financial needs turn to equity lines of credit or other types traditional credit loans. These types of lines of credit are popular and relatively simple to get, but what if you do not have any equity or assets to borrow against? If you find yourself in need of a line of credit but do not have any assets for collateral, or do not want to risk your valuable property you do have, and unsecured line of credit is another option for you.

An unsecured line of credit gives you the cash you need in the timeframe you need just like any other line of credit. Your credit line is based on an amount determined by your credit history, repayment ability, and income and you can use all or part of it as the need arises. The major difference between an unsecured line of credit and a secured one is that you do not have to put up valuable property but will have to pay a higher interest rate.

In order to qualify for an unsecured line of credit you will have to prove that you will be able to repay up to the full amount of the credit line in monthly payments. Your lender will analyze your income to debt level, your credit score and history, your employment history, and may want references. If you have good credit and can afford the monthly payments on the credit line you will probably qualify.

An unsecured line of credit is right for you if you need a credit line but do not have assets to use as collateral. Be careful, however, because it will take more research to find the best deal as they carry higher interest rates than secured credit lines. Talk to the banks in your city to see what the going rate of interest is locally and how much you qualify to be approved for.

National lenders will often have some of the best rates so it is always a good idea to look online for national lender rates. If you cannot find a bank willing to give you an unsecured line of credit you can usually qualify for a credit card, but using a credit card for your cash needs can be risky as many have fees and very high interest. Look into all your options so that you can get the best deal possible on your credit line.

Commercial Hard Money Lender

Commercial hard finance provider is a company or a private person loaning financial support. Often money-making hard cash loans are being issued with a higher interest rate than the traditional hard cash loans. Commercial hard money loans are usually being given for a short period of time and sometimes they are called bridge loans or bridge financing.

As traditional commercial hard money loan programs are very risky and have a higher than average loans likelihood of default, money-making hard finance providers offer a wide range of requirements on the type of real estate, special loan-to-value percentage and the certain minimum loan size for a money-making hard cash loan.

Bridge lender programs and commercial hard money loans:

Bridge lender programs and money-making hard cash loans are similar to the traditional hard money in the part of terms of the interest rates and loan to value requirements. A commercial hard cash lender or a bridge lender could usually be described as a strong financial institution with a large deposit reserves. Making a discretionary decision on a not conformed loan is totally in his power. Usually money-making finance providers (or borrowers) not conforming to the standard guidelines of a residential conforming credits.

And because of the fact it is a commercial property, commercial hard cash loans usually also do not conform to the guideline of the standard commercial loans. It is the usual and absolutely normal situation if the borrower is in a temporary financial distress or has just a building permit in place. The commercial property may not be in a good and marketable condition for a number of reasons; it may not be completed after the process of construction or reconstruction etc.

Some commercial hard cash lenders (bridge capital groups or private investment groups)could require some sale-lease back requirements or the joint venture to create an additional background for such a risky transaction that has a really high default rate. It is really usual situation when money-making hard finance providers temporarily offer hard or bridge money, allow the owner of the property to buy back his property within only a certain (as usual, not long) time period. If the property was not bought back by purchase or if it was sold within the period of time the money-making hard finance provider would get a right to keep the property at the agreed to price. In the case of default the property owner may lose the property to foreclosure.