Introduction
Kennedy Funding is a private funding firm that offers a short term, expensive, and popular style of financing known as bridge financing. These loans are usually demanded by the manufacturers and real estate developers who need the cash for some sort of purpose and who are also likely to be able to repay the loan as soon as they have sold their merchandise, developed the land etc.
Kennedy Funding has received lots of criticism in the recent past from borrowers who complain that the company’s loan terms are exploitative. Other reports have also accused Kennedy Funding of false and misleading advertising and of strong-arming borrowers into taking loans they cannot repay.
In this article, the focus will be made on the Kennedy Funding and the types of loans it offers. We will also look at some of the grievances that workers have lodged against the company. At the end, we’ll offer you some invaluable guidelines concerning scams and how to stay safe while cooperating with private lenders.
What Is a Bridge Loan?
A bridge loan is a type of loan which is usually utilized in an economic period involving one house selling and immediately acquiring another house. For instance, if you are selling your present house intending to buy a new one, you may require a bridging loan for your use in between the two periods: the time before selling your current house and that of closing the new house deal.
Similarly, corporate organizations and real estate firms employ it to fund projects. For instance, a business may require a bridge loan to buy stock or to upgrade its facilities in the business premises. Most of the large real estate developers will require the services of a bridge loan to complete the construction of a new edifice.
How Do Kennedy Funding Loans Work?
Most Kennedy Funding loans are actually of the non-traditional type; borrowers do not have to undergo the process of encumbering their valuable property to obtain the loan. The Kennedy Funding loans regularly have a relatively high interest rate that ranges from 10% to 20%. They also have short payment periods usually ranging from a few months to a year or so.
To get a Kennedy Funding loan, one must fill in some personal details combined with financial information about the borrower. You will also be required to show proof of income and employment. If the above application is approved you will receive cash from Kennedy Funding for the agreed amount that you want as a loan.
Kennedy Funding Complaints
In recent years, there are many complaints against Kennedy Funding as we have presented in this paper. Some borrowers have expressed their opinion that the given company has set unreasonable interest rates. Many people have argued that Kennedy Funding has been making misleading or false advertisements to members of the public and has coerced the borrowers to accept loans which they cannot pay back.
Some complain that Kennedy Funding’s interest rates are astronomical at times, and in other words are high. Some borrowers have protested, saying that the interest rates are so high that the borrower cannot pay off the loan before the due date. One other detain that people usually have is that Kennedy Funding offers their loans for a very short period of time. Lenders have noted that the company’s repayment period cannot be used to undertake a project or to buy a property.
Kennedy Funding has also accuse of doing some deceptive marketing strategies. Many of the borrowers have come out and accused the company of having misled them about certain terms of their loans. Some of the plaintiffs have accused Kennedy Funding of purging them into signing for capacities which they cannot meet.
Is Kennedy Funding a Scam?
However, it is noteworthy that, until now, Kennedy Funding is not consider a scam. The company is a legal entity establish and operating legally for a long time now. But there exist many complaints against the company and as a client, it is crucial to be familiar with such complaints before applying for a loan.
Tips for Avoiding Scams and Protecting Yourself When Dealing with Private Lenders
There is always a certain measure of risk when approaching private financing such as getting a loan from Kennedy Funding. Here are some tips for avoiding scams and protecting yourself:
- Do your research. Hence, it is important that you are able to do your homework on the parts of lending institutions and their specific types of loans. Check the Read Rights for various complaints and reviews online.
- Of course, before even agreeing on the loan, understand the terms and condition of the loan that has been availed. Always remember to go through the terms of the loan before going for the signing of the documents to Officials. These are the interest rate that is charge on loans, the time within. Which the loan should be paid back together with the manner in which it should be done.
- Get everything in writing. In specific requested information, make sure to request loan terms and conditions. The payments schedule and all the other important information in writing.
- High pressure tactics is another thing to look at. If a lender is bending all over himself, or herself to get you to accept that loan, then beware. Only when you think that you’re dealing with a legitimate lender should you be subject to pressure to make that needed decision.
- Today, never send money via wire to someone you have never met. First of all, if a lender is insisting that they want you to wire money to him or her, then that is foul play. Bogus lenders will never tell you to wire them money, if you are dealing with a legitimate lender.
FAQs
- What is a bridge loan?
The bridge loan is design to act as a short-term loan. That is usually use in financing the purchase of one property while waiting for the sale of another property.
- What is the Kennedy Funding loan process?
Kennedy Funding loans that are usually grant are usually non-notification. Which simply means that the borrower doesn’t have to provide any security. If any, the interest rate on Kennedy Funding loans is usually charge. At very steep rates or ranging from 10% and above. The loan terms are typically very short indeed, generally ranging from just a few months or so.
- What have people complained about Kennedy Funding?
Recently, there have been several reports file against Kennedy Funding Company. Whereby some of the litigants probably never obtained the money they applied for. There are complaints that relate to borrowers arguing that the firm’s loan contracts are unfavorable and usurious. Some have accused Kennedy Funding of involve in deceptive marketing tactics. And coercing borrower to take up loans with which they cannot meet their repayments.
- Is Kennedy Funding a scam?
No data to prove that Kennedy Funding is a scam. The company is therefore legally operating business that has been in existence for many years. Although, there are many complaints against the company. It is always wise to take time and look at the various complaints. That is make against this company before applying for a loan.
Conclusion
Kennedy Funding is a private money funding agency that operates by giving short term. Or bridge loans, which have high interest rates. It has also been the center of many controversies in recent years. With borrowers accusing the company of having exploitative loan interest rates. There have also been accusations that Kennedy funding has used improper propaganda to fam. And has forced some borrowers to sign for loans they cannot comfortably pay back.
In case you are thinking of applying for Kennedy Funding loan. You should have some understanding on what awaits you whenever you enter in that line of credit. Always make sure to first read and understand the conditions of getting the loan before you agree to it. You should also not fall for high pressure sales tactics. And you shouldn’t also send money through the wire to a stranger.
