Private lenders do things differently compared to banks and mainstream lending institutions. Instead of focusing on your credit history and serviceability, private lenders make their own decisions based on your application.
Banks tend to let you wait for a long time even if you have proper credentials. Private lending, on the other hand, disperses funds as soon as you’re approved. With these advantages, it is no wonder why non-bank lenders have risen in popularity since the COVID-19 pandemic.
Many construction and property development projects were forced to shut down their operations. Others that continued required funds more than ever. As the rules become more lenient and the world is ready to reopen, businesses are in dire need of financial assistance. Banks, however, are more vigilant than ever, offering fewer options with stricter requirements.
Private lenders target those who cannot obtain a loan from traditional lenders. If you need to settle or complete financing for a construction or development site, private lending solutions are available.
Borrowers who require finance for business purposes, including acquiring land for a development project, paying an outstanding ATO debt, and urgent funding for business purchases, can turn to private lending.
Private Lending Has Gained Momentum During the Pandemic
The COVID-19 crisis hit the world, affecting individuals and businesses. As many people lose their jobs due to the pandemic, they have started seeking out loans. But as coronavirus continues to spread, several lenders and banks are making it tough to get loan approval.
Before commencing any property development project, one of the most crucial factors to consider is your budget. If you need financial help, you should first know how much you can borrow. At the same time, you should also know if you can manage all the costs involved.