When starting a new business, it’s important to have an accurate understanding of the resources that can help bring the business up to par with competitors. One of the most crucial resources for helping businesses secure the resources they need is equipment financing.

Equipment financing helps provide businesses with the supplies they need at rates they can afford on terms that are convenient for them and the loan servicer. For more details and insights about the benefits of equipment financing, read below.

Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 65-70%. That is, if the property is worth $100,000, the lender would advance $65,000-70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

Mezzanine Financing: Non-conventional funding that shares characteristics of both debt and equity. It comprises of equity-based options (such as warrants) and lower-priority (subordinate) debt, and is used commonly in financing acquisitions and buyouts. Convertible debentures (see convertible loan) are also an example of mezzanine financing. Also called mezzanine debt.