A primer on private lending

What you and your clients should know

There’s no denying it’s a changed world out there, and the property market is no different. House prices are rising again as buyers enter the market for the first time or expand their portfolios. Whatever the reason for the property purchase, everyone’s looking for a better deal on financing. That’s one of the reasons why private lending is on the rise. 

Let’s cover the basics first. Generally, private lenders refer to organisations that provide financing and loans in a similar fashion to a bank. There are specific advantages to this type of finance for many borrowers – this includes flexible lending criteria, quick turnaround times for applications, processing, and settlement, and our favourite – the personal touch for customers. We enjoy being able to offer our clients tailor-made solutions and a friendly face.

Here are a few more perks worth considering when taking the private financing route:

Flexible terms 

Private lenders may offer more flexible loan types with negotiable terms and conditions. If your clients are struggling with the traditional lender’s terms, a private lender may be able to provide solutions like shorter loan terms or alternative repayment schedules. Many small businesses benefit from terms and conditions like these, as do property developers working on unique projects.  

Faster processing

Applications can be a lengthy, drawn-out process when dealing with traditional lenders like the banks. With a private lender, less paperwork is possible. Applications are approved quicker and funds flow faster. 

Acceptance criteria

Bad credit, no credit history in the country, or no trading history doesn’t mean the end of a deal. While traditional lenders lack wiggle room on acceptance criteria, private lenders can take a more individualised approach. Clients in a unique financial situation can often benefit from a private lender. 

At Baccus Investments Limited, we’re always available to chat. We encourage you to reach out and learn more about why private lending could be the best fit financing for many of your current and future clients.