Why Private Lending is the Real Deal

Is Private Lending Bad or Unethical? | Garnaco

Do you have any investment plans in the pipeline? What are your financing options? Rather than use the conventional lending arrangements, consider using private lending. Below are the reasons why you should prefer private lending.

Few Loan Requirements

Private commercial lenders have fewer requirements as compared to traditional lenders. They don’t have a lot of paperwork. If you apply for a loan from them, they’ll process it fast.
Mostly, private lenders make decisions based on the liquidation value of your collateral. There are no delays. You can, thus, rest assured that your investment will proceed as per your timelines.

Greater Control

Private lending gives the borrower greater control compared to conventional lending. For instance, although the lender sets the interest rate, the borrower can negotiate it. Besides, you may even negotiate the application requirements and the loan fees. Before any conclusive decision, you will have to give your input.

Greater Flexibility

Your loan repayment plan may not move as you had envisaged. Market circumstances may affect your business or investment. Private commercial lenders recognize that challenges sometimes arise. They are always ready to restructure your repayment plans or collateral release terms. They will modify the repayment model in pursuit of a win-win formula.

Perfect for Small Enterprises

Small businesses face challenges getting credit from conventional lenders. They tend to doubt their ability to repay the loan. If you are a small enterprise, make private lenders your partner. Most have their roots as small and medium-term enterprises. Thus, they understand the struggles that small enterprises face while accessing credit. Besides, they will customize their loan packages to suit your unique situation.

Closing Thoughts

To realize the above gains, ensure you choose the perfect lender. Ensure you conduct thorough due diligence. For every lender, you should check their experience, reputation, and loan packages.

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