Gauntlet Funding refers to lending money to a company on the condition that it, or one of its subsidiaries, is sold within a specified time frame. This article will go through how to use private money lending with Gauntlet Funding.
Gauntlet Funding has one of the hard money lending advantages that most people don’t consider, namely the tax benefits. Gauntlet Funding is a private lending method first used in the 80s, with a revival in the past decade since real estate has become so profitable. Gauntlet Funding is an unsecured form of equity financing that requires a minimum of $500k. It is structured to help small business owners obtain low-interest or debt financing by selling portions of their company as equity to investors. Gauntlet Funders are also referred to as Private Money Lenders.
Accessing private money loans is not easy. Most often, people need to show they will be able to pay back the loan, or they cannot get financing. But with Gauntlet Funding, there is no such guarantee. Private Money Lenders are guaranteed that their investment will increase because of the company’s sale, which is very appealing to many entrepreneurs.
The concept of the Gauntlet is being used in several different ways to help entrepreneurs. Over the last ten years, the Gauntlet has been used as a funding source for private equity programs and related business acquisitions.
Gauntlet Funding is best suited to situations with no strong need to use private money lenders. Lenders are not banks because they offer competitive rates, and there is no need to register your collateral with them. Private residential money lending is a good option if you have little or no collateral and sell your home or another valuable asset.
Gauntlet Funding is, in effect, a way of raising equity for any business by selling shares in the business to investors. It is not just used for real estate companies; you can use it for computer software, medical equipment, etc. It is not just for commercial businesses, though, as it can be utilized to help with funding of any type. As a commercial hard money lender, Gauntlet Funding can be a good option for somebody who does not have collateral and is looking for a loan that is provided fast with no hassle. It takes care of everything from the beginning to the end.
One of the hidden benefits of Gauntlet Funding was that the lender gets paid back first, then the owners, and lastly, shareholders. So if something happens with the business and it fails and goes into bankruptcy, there is still a chance that you will get your money back.
