Private lenders offer a diverse range of loans, tailored to meet the specific needs of borrowers who may not qualify for traditional bank loans. Here are some common types of commercial loans provided by private lenders:
Real Estate Loans: Many different lenders specialize in real estate financing, offering mortgages or bridge loans for property purchase, development, or renovation. This can also include fix ‘n flip loans and construction loans.
Business Loans: Private lenders may provide funding for small businesses or startups, supporting their growth and operations. These loans can include working capital loans, equipment financing, or lines of credit.
Hard Money Loans: These are short-term, asset-based loans often used in real estate transactions. The loan is secured by the value of the property rather than the borrower's creditworthiness.
Invoice Financing: Businesses that wait to get paid on their invoices can get up to 80% of the invoice amount advanced to put towards the business. This helps especially when a business waits 2-3 months to get paid but need the money to keep going.
Unsecured Personal Loans: Private lenders may extend unsecured loans, meaning there is no collateral required. These loans are typically based on the borrower's creditworthiness among other factors.
Each loan offers different solutions for businesses but also come with their own terms, rates, and repayment conditions. Therefore, any borrower should ensure that the chosen loan aligns with the borrower's financial goals and capabilities.
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