What are the advantages and disadvantages of using commercial hard money loans for financing?

Commercial hard money loans can be an attractive financing option for businesses that are unable to obtain traditional bank loans. One of the advantages of commercial hard money loans is that they typically have less stringent qualification requirements and can be approved quickly, allowing businesses to access the capital they need to seize opportunities or overcome cash flow issues.
However, commercial hard money loans often come with higher interest rates and fees than traditional loans, making them more expensive in the long run. Additionally, they typically require collateral and shorter repayment terms, which can put additional pressure on businesses that are already struggling. Overall, commercial hard money loans can be a useful financing tool for businesses in certain situations, but they should be approached with caution and carefully evaluated against other financing options.