The financial sector of the US economy plays a contributory role in driving economic growth. The sector mainly consists of two players: private money lenders and banks.
Here’s all that you need to know about the two financing options.
Who Has a Better Approval Rate?
Only 27.9% of small businesses managed to get their loans approved from big banks. This highlights how challenging it is to acquire loans from banks. This is mainly because of the rigorous selection processes that you need to go through in banks and the lengthy loan requirements that they ask for. Private hard money lenders don’t have any strict requirements and are only interested in the value of the property you are willing to give away as collateral for the loan.
Who Provides Quick Financing?
The time it takes to acquire a loan can make or break your business deal. The lengthy processes in traditional banks can make obtaining loans a time-consuming process. Since private money lenders don’t have any rigorous processes, they can ensure quick financing.
Who Is More Flexible?
Banks have a single loan policy that is the same for every borrower. However, private money lenders use the Loan to Value (LTV) policy to assess the loan requirements. LTV policy means that loan requirements depend on the value of the property you provide as collateral. Furthermore, since private lenders don’t have a fixed policy, they can choose requirements according to your needs.
While banks have historically played a big part in the financial sector, private money lenders are becoming the primary source of loans as they are more flexible and provide loans quickly.
Get Hard Money Loans from Private Money Lenders Now
If you have a poor credit history, going to a bank for a loan may be a waste of time. A viable option for you would be to acquire hard money loans. Visit Commercial Private Equity now to get financial hard money consultation. We have been in this industry for over 75 years and provide five types of specialized loans, including commercial hard money, bridge loans, construction loans, raw land loans, and workout loans.
We also offer three levels of loan programs with different loan conditions to cater to as many clients as we can. We also provide other loans, including blanket loans, acquisition loans, and corporate LLC loans.
Reach out to us today for more information.