Did a bank just deny your loan application? Not to worry because there are private lending options out there to explore. As a matter of fact, working with a non-bank lender can offer several advantages compared to traditional banks and this article will explore those advantages.
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4 advantages of working with a non-bank lender
Less lending criteria
Private lenders have more flexibility compared to banks. Private lenders may be willing to consider borrowers with less-than-perfect credit scores as long as they can demonstrate solid equity, enough cash to pay the monthly loan amount, and a clear exit strategy that protects all parties.
Faster loan approval process
Non-bank lenders generally have streamlined loan approval processes compared to banks. They can make quick lending decisions, which is a huge benefit to real estate investors. This speed is crucial for businesses that require immediate access to capital.
Specialized lending solutions
Non-bank lenders offer different types of lending for both commercial and residential projects. This includes refinancing, ETOs, bridge loans, and construction financing to name a couple. Private lenders can offer you in-depth knowledge with the experience they have working with these target markets.
Interest-only payments
Another way non-bank lenders offer flexibility is through interest-only payments. By deferring principal payments, borrowers can retain more capital to establish their business and focus on future growth. This can be particularly beneficial for businesses in their initial growth phases.
