NBA Contract Financing – Fast, Easy, Financing for NBA Players
What is NBA Contract Financing?
NBA Contract Financing is a unique type of financing that uses a player’s NBA 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 NBA 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 NBA Contract Financing Approval.
There are a lot of reasons NBA Players use contract financing. Athletes often need financing just like the rest of us, and one popular financial instrument they use is called NBA contract financing. Essentially, this is when the athlete borrows money from a private lender to help finance their expenditures.
Financing for NBA players have become increasingly common in recent years. This is largely because the average career length of an NBA 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.
NBA 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 NBA policies, contracts, and pay schedules (like Balanced Bridge).
If you are an NBA Player and want to learn more about taking out NBA Contract Financing, please continue reading – OR – Contact Our Athlete Financing Specialist right now.
Why do NBA 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 NBA 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 loan 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 NBA 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 NBA Contract Financing to make these types of purchases.
NBA Contract Financing Companies
NBA Contract Financing Companies like Balanced Bridge understand how NBA players get paid, how contracts work, how signing bonuses are paid, etc. To us, a guaranteed NBA Contract is great collateral for financing to NBA Players. It isn’t that we are any better than a bank. We just have different standards and view collateral differently.
- Credit Not a Major Factor – With NBA 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 NBA Player and you need to get some of your money right away, NBA Contract Financing is a great way to do it. Compared to some traditional loans, getting NBA contract financing is fast and easy. This doubly true when you are dealing with a company like Balanced Bridge, who is a direct lender and underwrites themselves. Since they don’t have to deal with multiple layers of underwriting bureaucracy to get you approved, you can get your money fast when you need it.
- Athlete Financing Companies know how the NBA Works – At Balanced Bridge, we have been 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 NBA Contract Financing from Balanced Bridge
How Much Money Can I Borrow Against My NBA Contract?
If you work with Balanced Bridge, 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 the how much NBA Contract Financing you can get.
How Long Does It Take To Get Approved For NBA Contract Financing?
This is the best part. You can be approved and have your money from NBA 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 an NBA Contract Loan?
One of the reasons you might work with an athlete financing company like Balanced Bridge is because we have different 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 NBA Contract Financing Work?
NBA 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 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 NBA 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 NBA Contract Financing, simply click on the “Apply Now” button below and fill out our quick and easy application form.