In the private money lending world a small sized loan is known to be a bit of a pesky endeavor. Small loans are typically classified as a loan amount under $50,000. For example, bridge lenders typically won’t make loans under $100,000. So that being said, why are small loans so hard to get?
One of the main reasons that small loans are hard to get is because it takes nearly the same amount of effort to do a small loan as it takes to do a large loan. Most brokers and lenders won’t spend their time on smaller-sized loans and this limits the number of small loans available in the market.