What are Private Lenders?
Private Lending is a rapidly expanding segment within the financial sector that plays a key role in financing businesses and homes.
Australian Lenders are backed by networks of individuals with strong financial resources, who may be licensed to conduct lending activities legally within Australia.
With these loans, people can access money to achieve goals and create opportunities that might otherwise be out of reach for long periods of time.
How is Private Lending different from Banks and mainstream lenders?
Bank loans can help greatly in financing businesses – improving liquidity, paying suppliers, consolidating debts, and so on. But things don’t go so smoothly for everyone.
Often, it’s simply not feasible to borrow conventionally from a bank, particularly for the self-employed, or for those with bad credit.
The process can be convoluted and take too long, requiring extensive paperwork before approval. Even if you don’t suffer from these issues, sometimes, the answer is speed.
If you find yourself out of options and in urgent need of funds, Private Lending is an accessible alternative to traditional bank loans, allowing you to secure funds swiftly and easily, and negotiate more flexible terms.
While mainstream lenders take many weeks to process and approve a loan, Private Lenders can frequently get you a pre-approval in no longer than a single working day, often within minutes of reviewing an application.
Private lenders are also much more agreeable in their lending, and do not require nearly the amount of documentation a bank would demand. The aim is to assess the individual situations of borrowers and achieve a mutually beneficial outcome.
What to know when taking a Private Home Loan.
Wherever you are in Australia, financing remains the same. For those who need additional funds, banks would always be the first consideration. If that fails, however, private loans can be used to settle difficult scenarios fast – including paying creditors and income taxes.
Is the interest rate higher? Generally, yes. But this is balanced by a higher risk tolerance and less documentation, as well as lower approval requirements (in addition to the increased processing speed).
Here are some things to keep in mind when taking a Private Home Loan
Always check their reputability –
Private Lending has come a long way, with lenders today holding licenses and following fully acceptable lending practices. Most lenders are accepted members of lending associations in their respective states. However, taking a loan still carries a risk, and it is vital that you make an informed decision when selecting a lender. Keep an eye out for a trusted lender with a solid record, air of professionalism, and good reviews. And make sure to check for an Australian Credit License (ACL) number.
Property with equity is required –
Private Loans are property-secured transactions. Private Lenders generally do not handle personal or cash loans. It would be good for you to prepare a property with equity beforehand, to ensure that everything goes smoothly.
Be transparent with your situation –
Once you have chosen a Private Lender, it is crucial that you give them the honest info that they need to help you.
Private Lenders will prioritise efficiency in solving your problems and are often able to tailor a package or plan to your specific requirements. Don’t worry about bad history or arrears – just share your situation and the rest will be sorted out for you.
If the banks have turned you away, a Private Lender may be the option for you. Gryphon Financial will connect you to one of over 200 individual investors with strong financial resources and help refinance real estate (with equity) to fix urgent issues.
All agreements are legal contracts regulated by the court. Whatever the scenario, we can tailor a loan to suit your needs. It’s a win for everyone involved.
Don’t wait until it’s too late, because at Gryphon Financial, We Turn No into Yes.