The misconception about Tennessee hard money lenders is that they’re an “alternative” financial solution. The connotation of course is that these solutions and arrangements are somehow subpar, and less credible than the products peddled to the market by the big box financial firms that are mostly headquartered on Wall Street, in some way or another. [ad#ad-top]In not as incidental a sense and way as one might think, there is a pattern if not a relationship between the big box traditional bank and these smaller independent Tennessee Hard Money Lenders. One pattern is one that occurs when the economy weakens or begins to contract. When an economy contracts, top managers at a big bank will sort of act rashly. They’ll see this one sector in the economy, and they’ll see huge losses. And because big banks are only about the bottom line, they’ll stem the financial bleeding by closing off capital spigot: new restrictions on capitalization will be instituted, policies on lending will be mandated from the top down, and in the end, borrowers will be turned away (often, good well qualified borrowers will be turned away for no good reason).
And that’s when these Tennessee hard money lenders come in to play. See, what these big banks aren’t realizing is that nothing’s changing about the demand when the refuse to lend. They see it as cutting losses, but they’re really turning away future business opportunities. In droves, customers are becoming disenfranchised with the big banks, and when they go out into the market, looking for lenders, and they find these hard money lenders in Tennessee, more and more, what they’re thinking isn’t “alternative,” but a real solution, a solution by a Tennessee hard money arrangement.
These smaller, independent lenders are pouncing on this opportunity to turn around the misconception and generally unfair negative misrepresentation of their establishments. Hard money arrangements are great solutions for folks that are needing to capitalize a business or even just a household, for a shorter period than is available to capitalize at the traditional big box bank. See, big boxes don’t want to mess with these financial arrangements because the profit margins aren’t fat enough for deals of this size. But these smaller lenders do. They’re about more than the bottom line. In fact, private mortgage lenders have been content to remain at this sort of grass roots scale through their century long modern history.