MLB Contract Financing– Fast, Easy, Financing for MLB Players
What is MLB Contract Financing?
MLB Contract Financing is a unique type of loan that uses a player’s MLB Contract as the basis, and collateral, for the financing. The amount a player can borrow is determined mostly by the size, type, and term of their MLB Contract. Personal Credit, bank statements, tax returns, and other information traditional lenders use to determine if a person is credit worthy play little role in MLB Contract Financing Approval.
There are a lot of reasons MLB Players use contract financing. Athletes often need financing just like the rest of us, and one popular financial instrument they use is called MLB contract financing. Essentially, this is when the athlete borrows money from a private lender to help finance their expenditures.
Financing for MLB players have become increasingly common in recent years. This is largely because the average career length of an MLB player is only three and a half years. With such a short career span, many players don’t have enough time to save up enough money to cover their expenses, so they take out financing instead and pay them back over time.
MLB players who have a guaranteed contract will be paid regardless of circumstances. That guaranteed contract is excellent collateral for finance companies who are familiar with MLB policies, contracts, and pay schedules (like Balanced Bridge).
If you are an MLB Player and want to learn more about taking out MLB Contract Financing, please continue reading – OR – Contact Our Athlete Financing Specialist right now.
Why do MLB Players Utilize Contract Advances?
- To make an all-cash offer on a home or on an investment property
- To capitalize on opportunities where the investment window precedes the cash flow from their contract or future contract
- To invest in their own brand, business ventures, or to invest in their own training and nutrition during the off-season months in which they are not receiving regular cash flow from their contract
- To consolidate/refinance higher-priced debt and align repayment with the expected future cash flow from their contract
- To provide short-term advances for various other reasons
Why do Newer MLB Players Use Contract Financing?
When you are in your first few years on the team, you may not have much credit history, which banks often use to decide if they are going to finance you money. Plus, banks often want to see up to three years of tax returns proving you can repay your loan. But as a new player, you might not have three years of tax returns yet.
But these are just a few of the reasons new MLB Players use Contract Financing. When you are first starting out with your team there are a lot of expenses. You have to find somewhere to live in your new city. You might need a dependable car. Some rookies and draftees already have families and need to relocate them and get their kids in school. There is travel. All of these expenses add up.
In addition, it isn’t uncommon for new athletes to want to purchase a new home for their parents or other family members as a way of thanking them for being supportive. Lots of newer players use an MLB Contract Financing to make these types of purchases.
Financing The Off-Season for MLB Players
Did you know that MLB players do not receive paychecks throughout the entire year? It’s true! They don’t receive any checks during the off-season, and they only a fraction of their salary during pre-season. Because of this financial strain, many MLB Players rely on using credit cards or MLB Contract financing to make it through the months without a paycheck coming in.
We think using MLB Contract financing for the off season has some benefits over trying to use credit cards. Credit cards can be a real challenge because they frequently have high interest rates, and fees, and offer insufficient credit limits for making major purchases like buying a home or purchasing businesses.
Figuring out how to finance the off season is a reality for every MLB Player. By making use of MLB Contract Financing, you can get the money you need now, and pay it back when the regular season starts up again. There is no reason to miss out on opportunities just because it is the off season.
MLB Contract Financing Companies
MLB Contract Financing Companies like Balanced Bridge understand how MLB players get paid, how contracts work, how signing bonuses are paid, etc. To us, a guaranteed MLB Contract is great collateral for financing to MLB Players. It isn’t that we are any better than a bank. We just have different lending standards and view collateral differently.
- Credit Not a Major Factor – With MLB Contract Financing, your credit is not a major determining factor for Athlete Finance Companies. They are going to check your credit of course, but often they are not looking for the same things a bank is looking for.
- Speed – If you are an MLB Player and you need to get some of your money right away, MLB Contract Financing is a great way to do it. Compared to some traditional loans, getting MLB contract financing is fast and easy. This is doubly true when you are dealing with a company like Balanced Bridge, which is a direct lender and underwrites your loan themselves. Since they don’t have to deal with multiple layers of underwriting bureaucracy to get your loan approved, you can get your money fast when you need it.
- Athlete Financing Companies know how the MLB Works – At Balanced Bridge, we have been providing financing for professional athletes for years. We know how the leagues work. We know how signing bonuses work. We know how off season and pre-season pay schedules work in all of the various professional sports leagues.
More Details About MLB Contract Financing from Balanced Bridge
How Much Money Can I Borrow Against My MLB Contract?
If you work with Balanced Bridge Funding, we can generally finance up to five million dollars against your contract – or – as little as $25,000. The size of your contract plays a major role in how much MLB Contract Financing you can get.
How Long Does It Take To Get Approved For MLB Contract Financing?
This is the best part. You can be approved and have your money from MLB Contract Financing in a matter of days. You simply provide the documentation we need, sign your agreement, and we send you the money right away. It is easier than you can imagine.
Why Wouldn’t I Just Borrow the Money from a Bank Instead of Using MLB Contract Financing?
One of the reasons you might work with an athlete funding company like Balanced Bridge is because we have different lending standards than banks as far as professional athletes go. We work with athletes, so we know how the payment system works and we see future athlete earnings as great collateral. It isn’t that we are any different from a bank – we just have different standards that are favorable to professional athletes.
Is Balanced Bridge Just a “Middle Man” or a Broker?
No, Balanced Bridge is a direct lender. We are not a broker for some other company. This is important because if there are any issues with your approval or after financing is made, you are dealing directly with the source of your financing instead of a broker who has no real say in any part of the process.
How Does MLB Contract Financing Work?
MLB Contract Financing is simple. You send us some paperwork showing the value of your upcoming contract, we negotiate how much of a contract advance you want to take out, we agree on fees and conditions, you sign our agreement and within a few days, you will have the cash in your bank account. Just Click Apply to Get Started.
CASE STUDY: Buying a New House With a Professional Athlete Contract Financing
We received a request to secure real estate financing on a multi-million-dollar home for a professional athlete who had just signed a $40 million contract.
This Player had a limited credit history and limited cash reserves in relation to the purchase price but needed to make a significant down payment to qualify for the mortgage. However, they would not receive this money for several months (until camp started) and they didn’t want to miss the opportunity to purchase this specific home.
What We Did:
We were able to provide this client with contract financing for one hundred and four percent of the purchase price which was enough to cover all of the fees and closing costs for the home. The client ultimately saved 8% by doing a cash purchase of the home. The Player was not required to use his own funds for a down payment, and he closed on the home loan in one week.
About Balanced Bridge
Balanced Bridge provides financing for professional athletes from the NFL, NBA, NHL, MLB, MLS, and even coaches from all of the major leagues. If you are an athlete with a guaranteed contract, chances are we can finance a contract advance for you, and have your money to you quickly.
Types of Athlete Financing Balanced Bridge Can Provide MLB Players
- Guaranteed Contract Advances
- Non-Guaranteed Contract Advances
- Pre draft advances
- NIL Advances
- Free-Agent/Arbitration-Based Contract Advances
- Real Estate Consolidation
- Banking and Refinance Solution
To get started, please begin by Applying. Just Click Apply to Get Started.
Ready to Apply?
If you’d like to apply for MLB Contract Financing, simply click on the “Apply Now” button below and fill out our quick and easy application form.