With the right help, businesses can still grow during difficult economic times

Times are tough

It comes as no surprise that the ongoing global pandemic has negatively impacted the world economy. Global growth for 2021 is projected at 5.4% which leaves the GDP at about 6.5 points below the predicted levels in January 2020.

However, the world is starting to open back up and the economy is in the process of slowly rebuilding itself. Many businesses have failed, but the opposite is also true. There are many companies who have done well in these difficult times, even expanding on their business portfolios or investments.

As a business, it is expected that at some or other time, your business will need access to capital through financing. The key here is to ensure that the financing comes from a reputable company. If not, owners risk the loss of potentially part of their company or may even find themselves with unfair repayment terms that can slow growth for many years.

It’s easy to think of your local bank as a first option, however in these trying times many banks only lend money to companies that don’t need it. They are afraid of taking on too much risk at this stage and are unable to provide a variety of options to suit your businesses needs. 

So what other options are out there for businesses who need to take out a business or real estate loan? Institutional investors like lenders who are backed by hedge funds, endowment funds and private equity companies are often an option used by businesses that need options when it comes to lending money. These companies specialize in providing not only financial solutions to their clients, but also to advise their clients on the best course of action to ensure the best chance of financial success.

Private lending vs Bank loans

Hasanov Capital is a business and real-estate finance company with a large network of lenders, ready to negotiate great terms for their clients. The company is run by CEO and co-founder Farrukh Hasanov, an entrepreneur with 10 years of experience in running small businesses and investing into real estate. 

While some were struggling to keep afloat in 2020, Hasanov Capital placed more than a $100 million in business acquisition financing. Their clients consist of small to medium size businesses as well as real-estate investors looking to expand their portfolios.

Jonathan Thompson, a real estate investor says of the company: “I have relied on Hasanov Capital’s expertise to fund many investment property loans and have referred them to a few of my associates as well. I highly recommend this professional company for all commercial financing needs.”

The company offers a variety of financing options, tailored to suit the specific requirements of the client. Some of their offerings include construction loans, mortgages, mezzanine loans, bridge loans and equity capital. Loan amounts start  from $20 000 with no maximum limit. This is made possible because of their strong strategic partnerships with leading industry investors.

The obvious way to get an influx of cash into your business is through financing. Businesses might need to get a loan to:

  • Expand the footprint of the business
  • Sell their accounts receivables to provide them with necessary capital to scale quicker
  • Purchase equipment
  • Purchase more inventory
  • Acquire a business
  • Fund a start-up

There are many benefits of using a Financial company such as Hasanov Capital for additional finances as opposed to going directly to a bank. Banks have stiff regulations in place which often makes it difficult for new, smaller or growing businesses and real estate investors to obtain loans. 

Private lenders usually have a much faster process than the banks which means that you are able to get cash quickly when you need it.

Additional costs such as banking fees, reporting requirements etc. that are not shown in the original fee calculation, can make up a large portion of repaying the banking loan. Private lender companies do not have these restrictions in place and it is thus easier to get a loan approved. Fees usually only apply once the loan is closed. 

It is important to note that private lenders usually have higher fees than the banks. However, if the option is between growing a business or paying higher fees, the saying that the best loan to get is the one that you can get approved still rings true. Remember, banks do not need to approve loans to make profits, but finance companies make their living by providing loans.

In difficult economic times, there are always those who seek opportunities and continue to grow their business portfolios no matter the challenges. It is evident in the amount of acquisition financing provided in 2020 by Hasanov Capital.