What is Commercial Hard Money Lending?

With a commercial hard money loan, underwriting decisions are based on the borrower’s real estate assets.  Such loans are also called “no-doc loans”, “private hard money loans”, etc.  For a commercial hard money loan, the lending decision is based on the “commercial asset” as opposed to relying heavily on a borrowers’ credit, financials, etc.

By relying on an asset, private lenders are able to fund transactions that might not fit traditional lending guidelines.  Private Lending Group is a unique lender in the hard money space.  We are a direct lender and lend our own funds; our money lenders underwrite in-house without any upfront fee. This allows Private Lending Group to provide honest answers quickly without the thousands in out-of-pocket expenses typically required for a commercial real estate loan (appraisals, etc.).


How is Commercial Hard Money Different from a Bank Loan?

The following table summarizes the key differences in loan characteristics between a conventional bank loan and a commercial hard money loan from Private Lending Group.


Private Lending Group Commercial Lending

Basis for Loan Approval

Income, credit score, tax returns, financialsReal estate assets

Minimum FICO Scores

Typically 700+580 (or case by case)

Required Documentation

SignificantMinimal on the property

Upfront Fees

Inspections, appraisals, application, etc…No upfront fees

Loan Committee

We make the decisions directly

Loan Money Received

2-3 monthsLess than 10-14 days

A commercial hard money loan is a good alternative to traditional bank financing. This alternative financing can be very beneficial to the borrower in many circumstances. Below are just a few of the reasons for when a commercial hard money loan might be appropriate.

When is a Commercial Hard Money loan appropriate?

  • You need a loan quickly and can’t wait the 3 to 6 months for a traditional bank loan
  • You do not qualify for traditional financing for whatever reason (income, tax returns, unique property, etc.)
  • Transaction falls out of traditional lending parameters
  • Your credit is impaired
  • Although you have ample equity, you or your property have liens, judgments, unpaid bills, etc. that requires cash to resolve
  • You have ample equity in your property and need cash fast
  • You need business working capital
  • Your property is occupied by your business and your financials don’t tell the full story
  • You need a loan without all the documentation requirements of a bank
  • You are trying to avoid foreclosure and restructure your debt
  • You are a foreign national
  • You need a complex loan with multiple pieces of collateral
  • You need a creative solution to a loan that doesn’t fit other lenders


Please fill out the Loan Request Form below to Get Started

Let?s start with a couple of questions to see if your proposal is something we are interested in.

* Property State:
* Collateral Type:
* Do you live at the property?: