Private lenders provide loans with more flexible lending terms and can be a good option for those who dont qualify for traditional bank loans or need quick access to business funding. Private lenders typically secure loans with assets like residential or commercial real estate or land. Private loans can be used for many purposes including working capital, equipment purchases, funds required for new projects, property development, capital fitouts and purchasing a business to expand.
What are Private Lenders ?
Private lenders are non bank lenders that source their funds from high net worth individuals, pooled mortgage funds or private investors. Private lenders offer a range of loan products including business loans and property loans.
Why Choose a Private Lender?
Flexibility - Private lenders tend to have more flexible lending and approval criteria.
Speed - Private lending loans can often be processsed and approved faster than bank loans.
Customisation - Private Lenders can often more tailored business funding solutions.
Important Considerations --
Interest Rates - Private loans often come with higher interest rates and this varies based on the amount of serviceability documentation can be provided and the level of borrowing secured against a property and the quality of the asset (LVR)
Due Diligence - it is important to conduct thorough due diligence on any private lender before committing to a loan as you should with any lender you are borrowing from.
