What Is a Commercial Hard Money Loan?
Commercial hard money loans are short-term financing solution primarily secured by real estate. Unlike traditional bank loans that focus on credit history and income, hard money loans emphasize the value of the property being used as collateral. These loans are typically provided by private lenders—like First Capital—and are designed to offer fast funding when time or credit limitations make traditional lending difficult.
Businesses often turn to hard money lenders for real estate purchases, property improvements, bridge financing, or to take advantage of time-sensitive investment opportunities.
How Do Hard Money Loans Work?
Hard money loans work differently from conventional commercial mortgages. Here’s how the process typically unfolds:
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Application & Property Evaluation – The lender assesses the property’s market value, not just your financials.
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Loan Terms & LTV Ratio – Most lenders offer loan-to-value (LTV) ratios of around 60–75%.
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Short-Term Financing – Terms often range from 6 months to 3 years, ideal for transitional or turnaround projects.
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Interest Rates & Fees – Interest rates are usually higher than bank loans but reflect the speed and flexibility offered.
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Funding Speed – Loans can be approved and funded within days, compared to weeks or months for bank loans.
Because of their structure, hard money loans are often used for fix-and-flip projects, commercial property acquisitions, or refinancing under tight deadlines.
Is a Hard Money Loan Right for Your Business?
While hard money loans are powerful financial tools, they aren’t right for every situation. Here’s how to determine if it fits your needs:
When It Might Be Right:
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You need quick access to capital to close a property deal.
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Your business or project doesn’t qualify for traditional financing due to credit issues or unconventional income documentation.
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You’re purchasing a property that needs rehabilitation before refinancing with a long-term loan.
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You’re seeking bridge financing to cover short-term needs until permanent funding is secured.
When It Might Not Be Ideal:
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Your business qualifies for low-interest traditional bank loans.
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You need long-term financing or cannot handle higher short-term interest costs.
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The project doesn’t have sufficient equity or collateral value.
The key question to ask is: Will the potential return or benefit from the loan outweigh its higher cost and short-term nature?
Benefits of Hard Money Loans
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Speed: Approval and funding in days, not weeks.
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Flexibility: Fewer documentation and credit requirements.
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Leverage: Ideal for property investors or developers needing fast capital.
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Opportunity: Helps businesses capitalize on time-sensitive deals that traditional banks might miss.
Why First Capital Is the Go-To Source for Commercial Hard Money Loans
At First Capital, we specialize in providing commercial hard money loans tailored to your business goals. As a trusted Texas hard money lender with nationwide reach, we understand the urgency and flexibility that entrepreneurs and investors need.
Here’s why businesses choose First Capital:
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Fast Approvals & Funding: Get access to working capital when it matters most.
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Flexible Loan Structures: Customized to match your project’s timeline and collateral value.
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Experienced Commercial Lending Team: Decades of expertise in real estate and business finance.
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Nationwide Service: While based in Texas, we serve clients across the U.S. with reliable funding solutions.
Whether you’re acquiring commercial real estate, refinancing debt, or funding a short-term project, First Capital’s Hard Money Loans can bridge the gap between opportunity and success.
Final Thoughts
If your business needs fast, asset-backed financing, a commercial hard money loan might be the perfect solution. These loans offer the agility and speed traditional lenders often can’t match—especially when time-sensitive opportunities arise.
Contact First Capital today to explore how our Hard Money Loan programs can help you grow your business.