Frequently Asked Questions

This is a common question, and it is also a complicated question. The answer is that it depends. Rates fluctuate daily. Typically, alternate funding demands a higher interest rate than you’d find at a traditional bank with prime loans because alternate lending consists of private money allowing more flexibility, a willingness to take on higher risk, not afraid to confront challenging projects that require out-of-the-box creative financing, and they typically close much quicker than traditional lenders. 

Our clients look at rates very differently. To them, rates are not the main concern for getting funded. An example is many of our loans can close from 48 hours to two to three weeks depending on how complicated the deal is. Some of our clients don’t have the luxury of time and large cash reserves so they are willing to do what it takes to complete the transaction. They are trying to grow their business to stay competitive and they may need quick cash to purchase equipment, lines of credit, or they may have a gap in their real estate deal due to not enough equity or an investor partner backed out and they need gap financing to make the deal work. Another big factor is that many of our loans are Non-Recourse. This is reason enough and makes it worth it to pay a higher rate for most of our clients. If rates are still your main concern, then the best way to determine for sure is to submit an application. We always recommend checking out your traditional lender first. Then, if that doesn’t work, it is going to take too long, they want you to sign personal guarantees, they want too much equity, they want too much of a down payment, etc. then come see us. We are typically much more flexible.