When you’re faced with a financial emergency but don’t have the cash to fund your need, you can resort to borrowing money. You can turn to a bank, but often, when you do, it’s a too-late-the-hero situation. Banks and other traditional lending institutions often have a long process of loan approval, what with credit checks, income assessment, and character investigation to deal with. If you need money today, turning to banks may not be the best idea, even if you have a great credit rating and the ability to repay.

But don’t fret. You still have other options, and they process your loan faster and give you the money you need in a matter of days or even hours. For instance, we are a Miami-based hard money lender that can deliver a pre-approval within an hour of application. Below, we have listed your loan options if you need cash for an emergency or to finance an investment immediately.

Hard Money Loans

Hard money lenders, such as Monroe Funding Corp., do not focus on your credit history or income, which means there’s less paperwork to do. Instead, hard money loans are asset-based. You use your real estate as collateral to secure the loan. Lenders of this type of loan see the value of your asset as more important than your financial standing.

This is your loan option if you’re investing in a hot-market property with multiple offers. Since the lenders don’t have to verify your income or review bank statements, they can process your application quickly once they’ve assessed the value of your property.

If you’re a fix-and-flip investor, hard money loans are the best financing option for you, because this loan structure is short-term. It can last for twelve months up to a maximum of five years. As a house flipper, you often need just a few months to purchase, renovate, and sell a property for a profit.

Auto Title Loans

If you need cash to finance an urgent expense, on the other hand, auto title loans may be right for you. Just like hard money loans, auto title lenders don’t focus on your ability to pay or on your credit history. What they look at, instead, is the value of your car, which will serve as collateral.

Auto title loans can be completed at a storefront within a day or two. Lenders only need to see the car, proof of ownership and insurance, and identification. Once you’ve submitted the requirements and the lender has evaluated the loan value of your car, they can process your application. Typically, you’re required to repay the loan in 30 days, but other companies offer a debt rollover.

Pawn Shop Loans

In a pawn shop loan, you take an item of value (usually jewelry or digital photography equipment) to use as collateral for a loan. The lenders don’t check your credit history. Instead, they assess the value of the item, its condition, and its resale value. Additionally, they work with authorities to make sure the item you’re putting up as collateral is not a stolen good. For this reason, pawn shops may require proof of purchase or ownership.

The lender decides whether to offer a loan and settles on the loan amount based on the item. If you accept the offer, the lender immediately hands you the money and a pawn ticket. Apart from a quick transaction, the advantage to a pawn shop loan is that your credit score won’t be affected even if you don’t repay the loan. However, there are consequences to defaulting on a pawn shop loan.

In a perfect world, we don’t need loans. But this is the real world, and at times, we find ourselves in a financial pinch. If you need cash today, taking out loans from traditional institutions, such as banks, may not be the best option. Because of their requirements and rigorous processes, the transaction can be slow. But there are alternative to banks – and these lenders don’t meticulously review your financial standing to approve your loan. All they need to review is what you’re putting up as collateral.

If you are investing in a hot-market property in Miami-Dade, apply for a hard money loan with us today. We can get you approved in a matter of a few days. Fill out this form to get started.

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