On this page
Based on each lender's published information; we did not apply for loans.
A business hard money loan is a short-term loan made for a business purpose and secured by real estate. The lender sizes it on the property's value and your equity, not on your company's revenue or tax returns. Fairview Commercial Lending puts the difference plainly in its comparison: a bank approves on income, credit score, tax returns, financials; it approves on real estate assets. If you own the building your business uses, or other investment property, that equity is what you borrow against.
What counts as a business-purpose loan
Federal Truth in Lending rules (Regulation Z) cover consumer credit. 12 CFR 1026.3(a) exempts "an extension of credit primarily for a business, commercial or agricultural purpose" and "an extension of credit to other than a natural person." The official interpretation adds rules for rental property:
| Rule | What it covers | Effect |
|---|---|---|
| 12 CFR 1026.3(a)(1) | Credit primarily for a business, commercial or agricultural purpose | Not covered by Regulation Z (Truth in Lending) |
| 12 CFR 1026.3(a)(2) | Credit to other than a natural person, such as an LLC or corporation | Not covered by Regulation Z |
| Comment 3(a)-4 | Buying, improving or maintaining a rental you do not live in, any number of units | Deemed business purpose, unless you expect to live there more than 14 days in the coming year |
| Comment 3(a)-5 | A rental you live in or will live in within the year | Business purpose only if buying a building with more than 2 units, or improving one with more than 4 |
Many hard money lenders lend only for business purposes, and many lend to an LLC rather than to you personally. Easy Street Capital, for example, says its rental loans are strictly for business-purpose and occupying the property is prohibited. A loan on a home you live in is a different product with consumer protections; see owner-occupied hard money loans.
Hard money lenders for business: what they say they lend for
| Lender | What it says about business use | Terms |
|---|---|---|
| Fairview Commercial Lending | Lists business working capital and property occupied by your business among its uses | Approval on real estate assets; no minimum FICO; money in less than 10 days |
| Griffin Funding private money | Names entrepreneurs, freelancers and business owners with non-traditional income | No-FICO loans up to 50% LTV; no-cash-flow loans up to 75% LTV; up to $5 million |
| Northwest Private Lending | Business-purpose loans; in Washington, business purpose on non-owner-occupied property only | Commercial, industrial and mixed-use, $50K to $2M; business-purpose loans generally 2 years |
| Kiavi | Lends only to business entities, on non-owner-occupied residential property | Does not lend on mixed-use or commercial property |
From each company's own website, read October 29, 2026. "Not stated" means the company does not publish it on the pages linked. Terms change; confirm with the lender. Not financial advice.
Fairview also names a small business owner that shows a number of expenses to minimize taxable revenue as a borrower who may not fit a bank. Commercial property lenders are compared on commercial hard money lenders.
Business hard money loan vs bank loan
| Bank | Fairview Commercial Lending | |
|---|---|---|
| Basis for approval | Income, credit score, tax returns, financials | Real estate assets |
| Minimum FICO | Typically 700+ | None |
| Documentation | Significant | Minimal on the property |
| Upfront fees | Inspections, appraisals, application | No upfront fees |
| Loan committee | Required | None |
| Money received | 2-3 months | Less than 10 days |
From Fairview's own comparison table, read October 29, 2026. It also says a hard money loan fits when you can't wait the 3 to 6 months for a traditional bank loan.
How much you can borrow
The property, not the business, sets the limit. On a $2,000,000 investment property with no mortgage, Griffin Funding's no-FICO investor program (up to 50% LTV) would allow up to $1,000,000, and its no-cash-flow investor program (up to 75% LTV) up to $1,500,000, both within its $5,000,000 maximum. Ask whether a lender accepts a property your own business occupies; Fairview lists that use. Any existing mortgage reduces that room. Northwest Private Lending lends $50K to $2M on commercial, industrial and mixed-use property in Oregon, Washington and Idaho.
Example: a property that already has a mortgage
Say the property is worth $1,200,000 and you owe $300,000 on it. At a 75% LTV cap (Griffin's no-cash-flow investor program) the loan can total $900,000, so after paying off the $300,000 you net up to $600,000 before costs. At 50% LTV (its no-FICO investor program) the total is $600,000 and you net $300,000. The lower your credit or documentation, the more equity the lender wants left in the property.
What is the payment on a $1,000,000 business loan?
Most hard money loans are interest only. At Northwest Private Lending's published 1% a month, a $1,000,000 loan costs $10,000 a month in interest, plus $30,000 in points at closing (3%) and its $650 document fee. The whole $1,000,000 is due when you sell or refinance. For comparison, a 30-year amortizing loan at the same 12% annual rate would be $10,286.13 a month, slightly more, but it pays the balance down. Work out your own figures in the hard money loan calculator.
Upfront costs
Fees vary as much as rates. Fairview lists no upfront fees where a bank charges for inspections, appraisals and applications. Northwest Private Lending charges 3 points ($2,500 minimum) and a $650 document fee at closing, with no underwriting fee and no appraisal. Ask every lender for the full fee list before you compare rates.
Uses and limits
Where it can work
- Working capital secured by property you own (Fairview lists it).
- Buying or refinancing the building your business occupies.
- Bridging a purchase while a bank loan is pending, then refinancing.
- Investors buying, renovating or holding rentals through an LLC.
Where it does not
- No real estate to pledge: these lenders lend against property.
- Long-term working capital: terms are short, generally 2 years at Northwest Private Lending.
- Cheap money: rates and points are higher than bank loans.
- Your home: investor lenders such as Kiavi lend only on non-owner-occupied property.
The biggest risk is the collateral itself: if the business cannot repay when the 2-year term ends, the lender can foreclose on the property. Plan the exit (sale, refinance or cash) before you borrow. The basics of how these loans work are on what is a hard money loan.
What you need to qualify
- Equity in real estate. The loan-to-value cap is the main test: 50% for Griffin's no-FICO program.
- A business purpose. Lenders such as Kiavi lend only to business entities.
- A clear exit. How you will repay within the term.
- Some lenders, a credit check. Fairview lists no minimum FICO; Northwest Private Lending requires no minimum FICO on its commercial loans.
The full list of what hard money lenders ask for is on hard money loan requirements.
Related guides
Frequently asked questions
Can I use a hard money loan for my business?
Yes, if you have real estate to pledge. Lenders such as Fairview Commercial Lending list business working capital and property your business occupies among their uses, and the loan is sized on the property's value.
What do I need to qualify for a hard money loan?
Mainly equity in real estate and a plan to repay. Griffin Funding's no-FICO program lends up to 50% of value with no minimum credit score, and Fairview says it approves on real estate assets with no minimum FICO.
What is the payment on a $1,000,000 business loan?
At Northwest Private Lending's published 1% a month, interest only, the payment is $10,000 a month plus $30,000 in points at closing. A 30-year amortizing loan at 12% would be $10,286.13 a month.
Do business hard money loans require good credit?
Not always. Griffin Funding's no-FICO investor program and Fairview's commercial loans list no minimum credit score; the trade-off is a lower loan-to-value, 50% at Griffin.
How fast can a business hard money loan close?
Fairview Commercial Lending says money is received in less than 10 days, against 2-3 months at a bank; Northwest Private Lending says non-owner-occupied loans typically close in 3 to 5 business days.
Are business hard money loans covered by Truth in Lending?
Generally no. Regulation Z exempts credit primarily for a business purpose and credit to other than a natural person, such as an LLC (12 CFR 1026.3(a)).