Navigating the financial landscape can be an arduous task, especially when faced with the pressing need for funding. With numerous lending options available, the choice between traditional lenders like banks and private lenders can often leave borrowers in a quandary. However, with banks at an all-time standstill when it comes to funding, borrowers have turned to private lending, specifically hard money loans. This loan option has grown to become a promising alternative to conventional borrowing. So does it make sense to choose the private lender route today? It all depends on your specific needs, but here are some reasons you might want to consider.
Quick and Efficient: Unlike traditional lenders who may take months to process your financial information and make a decision, direct private lenders are renowned for their expediency. Why? Because the credit of the borrower is secondary. It’s all about the deal itself, which is a big factor in how private lenders can approve loans in mere days rather than months—making them the optimal choice for bridge loans or when the need for working capital is urgent.
Credit History: As a result of the bank turmoil earlier this year, traditional lenders have even more stringent policies in place that often reject or take forever and a day to approve loans for prospective borrowers with less than perfect credit histories. However, a direct private lender looks beyond these boundaries. Again, they are focusing on the deal’s merits instead of the borrower’s financial past. With just a clean title, an environmental report, and a current appraisal, a direct private lender can determine your loan eligibility.
Flexibility: Traditional lenders shy away from approving loans for projects involving raw land purchases due to the high risk of unexpected obstacles. Direct private lenders, on the other hand, evaluate each deal individually, taking into account the project’s merits, and offer a greater degree of flexibility. Therefore, if you’re eyeing a raw land purchase or a similar project, starting with a direct private lender could be your best bet.
Global Reach:
When it comes to international loans, traditional lenders are often apprehensive due to unfamiliarity with foreign real estate markets and regulations. In this case it’s good to do your homework to find private lenders that specialize in approving international loans. This type of bridge loan lender is knowledgeable about various countries’ financial laws, providing a seamless borrowing experience for international projects.
Kennedy Funding CEO/President Kevin Wolfer says, “We’ve closed loans in regions as diverse as the Caribbean, Canada, South and Central America. Borrowers can rest assured that wherever they need an international loan, we have the infrastructure necessary to make it happen for them.”
Whether you’re considering hard money loans for an urgent financial need, a risky venture, or an international project, private lenders could prove to be the smart route with the ability to provide the flexibility, speed, and customer-centric approach that traditional lenders may lack.
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