What are the advantages of borrowing from Royalty Lender?
Generally, local banks are unable to provide you with a royalty loan. Due to the amount of paperwork and mineral valuation that banks must use, it usually is not a cost effective loan. If you borrow from a bank, you will most likely be required to provide personal financial information, credit reports, and company financial information if applicable. Banks will also pursue foreclosure and take ownership of your royalty to satisfy the loan in the event of default or non-payment. Royalty Lender offers a simple loan with no personal liability, no credit check, and generally no foreclosure.
What qualifications do I need to be eligible for a loan?
You must be a mineral royalty owner and receive monthly royalty payments.
What information will I have to provide Royalty Lender to process my loan application?
Initially, you will need to provide a copy of your last three months royalty checks and revenue statements. If your royalty revenue is sufficient to meet the minimum loan requirements, you will then need to provide information relating to your mineral and royalty interest.
How do I make payments toward my loan?
Your royalty checks will be redirected to us until your loan has been paid off.
If I have a low credit score, can I still qualify for a loan?
Yes, Royalty Lender does not pull a credit report nor will we factor your personal credit standing in the credit approval process.
What determines the loan amount?
Your loan amount will be determined after a careful analysis of your mineral and royalty interest. Generally, the loan amount is in a range between twenty-five (25) and thirty-five (35) times your current monthly average royalty income. This may vary depending on the type, age, and location of the wells representing your mineral and royalty interests.
Is there a minimum loan amount?
Yes, the minimum loan amount is $15,000. If your monthly royalty income is $600 or greater, you may be eligible for a loan.