03 Apr Embrace the Power of Private Funding
In the ever-evolving landscape of financial services, Private Funding emerges as a beacon of opportunity for businesses and individuals alike. Known by various names, such as Peer-to-Peer Lending, Private Money, or Solicitors Loans, it stands tall as a reliable alternative to the complexities of traditional banking.
With regulatory hurdles tightening around conventional lending institutions, Private Funding steps in to fill the gap, particularly benefiting SMEs and individuals navigating the tricky aftermath of Covid and the Financial Services Royal Commission. It’s a lifeline, keeping the wheels of commerce turning smoothly.
The reality of Private Funding is that it’s actually not too different from traditional funding. That’s what makes it ideal for a range of borrowers.
Traditional Funding relies on investors depositing their funds to the bank for a return. The bank pools the funds then lends it to borrowers, for a return. Private Funders have access to their own pool of funds that they lend out for a return.
Traditional funding considers your security, your ability to repay your debt, your lending history and the purpose of the facility. Private Funding does that too.
The process is, at its core, the same:
- You bring your requirements to the funder/broker
- Your proposal is assessed
- Due diligence is completed
- Your loan is approved
- Mortgage documents are signed
- Your loan is settled
Private Funding is quick.
The Advantage of Private Funding
One standout advantage of Private Funding is its speed. Unlike the prolonged waiting times associated with traditional bank loans, Private Funding can expedite loan applications within a week. This agility stems from the absence of red tape and the utilization of experienced solicitors well-versed in Private Funding practices.
Moreover, Private Funders operate with a degree of freedom unseen in traditional institutions. Without stringent capital requirements or rigid investment mandates, they can adapt lending parameters to suit individual needs.
Private Funding opens doors to possibilities that traditional lenders often shy away from. Second mortgages, for instance, are readily embraced, as Private Funders recognise their importance in certain financial scenarios. This willingness to take calculated risks aligns with the ethos of Private Funders.
When engaging with Private Funders, the focus shifts from rigid policy manuals to a pragmatic approach to lending. Instead of drowning in paperwork, the emphasis is on understanding:
- Why lending is desired,
- What assets serve as collateral,
- Where lending opportunities lie,
- Who the potential borrowers are,
- What level of risk is acceptable, and
- How repayment strategies are structured.
This streamlined approach translates into swift turnaround times and a hassle-free process for borrowers.
In the realm of Private Funding, the spotlight shines on asset-based lending rather than stringent income assessments. The emphasis lies on the value of assets held as security, offering borrowers relief from stringent income verification processes.
Interest rates in private funding are determined by factors such as loan-to-value ratio (LVR), loan amount, and the nature of the collateral offered. Each rate reflects the risk undertaken by the funder, ensuring a fair assessment of the lending scenario.
When Opportunity Knocks
The allure of Private Funding extends beyond mere financial transactions; it’s about swiftly seizing opportunities. Whether it’s leveraging bulk purchase discounts, seizing lucrative property deals, or addressing pressing financial needs, Private Funding allows you to move QUICKLY.
From business restructuring to property development, Private Funding is a versatile tool for diverse financial needs. Its agility and accessibility make it a preferred choice for those seeking alternatives to traditional bank financing.
While traditional banks remain essential, Private Funding offers a complementary avenue for those overlooked by mainstream lenders. Forming enduring relationships with Private Funders streamlines future borrowing processes, fostering a cycle of ease and efficiency.
At IBN Private, we specialise in navigating the intricate landscape of Private Funding and have done so for over 20 years. With our expertise and experience, we offer tailored solutions to match your unique financial needs, ensuring a seamless journey towards your goals.
To recap, private Funding has a very real place in the market for the following reasons:
Speed: Your private funder can make their own decision about whether they want to fund your loan. They don’t answer to boards, don’t require you to jump through hoops and take a common-sense, exit strategy approach to your loan requirements.
Flexibility: Private funding can be used for all sorts of purposes. Each deal is evaluated individually and on its own merits. If you are in a position where you anticipate regular peaks and troughs within your business, forming a long-term relationship with your private funder might be a good option. You may be able to negotiate more flexible terms if your funder has an intimate knowledge of your business.
Approval: Private funding exists to provide finance to borrowers that mainstream lending won’t touch. Your opportunity for approval is right there.
Convenience: Private funders move quickly, have extensive property knowledge and can make an informed decision quickly. They exist to allow you to act on your business needs as they come up and provide speed, flexibility and approval to get your deal done.
Working with a company like IBN Private gives you options
We are THE specialists in the Private Funding market and have the experience and expertise to quickly determine whether Private Funding is an option that will work for you. Using IBN Private frees up your time; we work with the funder to settle your deal.
To get started on your loan application, click here. We look forward to helping you meet your goals.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.