Finding the right financing for your business can be a daunting task. With so many options available, it’s important to understand the benefits and drawbacks of each one before making a decision. Private lenders are becoming an increasingly popular option for entrepreneurs looking to get business financing. Here are seven reasons why you should consider using a private lender when seeking funding for your business venture.
1. Quicker Approval
Private lenders are usually faster than traditional banks when it comes to approving and providing financing. This is because they tend to have simpler and less stringent criteria for loan approval, often relying more on the borrower’s character and past experiences rather than rigid credit score requirements.
2. Flexible Terms
Private loans generally offer more flexible terms than traditional bank loans. This can include longer repayment periods, lower fees and interest rates, or more lenient collateral requirements.
3. Lower Credit Requirements
Private lenders may be more willing to look past a poor credit history if they believe the borrower is likely to repay the loan on time. This makes them a great option for entrepreneurs with bad credit that wouldn’t qualify for traditional bank financing.
4. Relationship-Based Lending
Private lenders often use a relationship-based approach when assessing loan applications. This means that they may be more willing to look past a poor credit score if the applicant has strong character references or other business relationships that can help secure the loan.
5. Personalized Service
The lending process with a private lender is often more personalized than at a traditional bank. Private lenders are usually smaller companies and may be willing to provide tailored loan packages that fit the needs of the borrower.
6. Opportunity to Build Credit
Using a private lender to obtain financing can be an opportunity for entrepreneurs to build their credit score. As long as the loan is paid back on time, the borrower’s credit score will likely improve.
7. Alternative Funding Options
Private lenders offer alternative financing options such as factoring, merchant cash advances, and equipment financing which can be used to quickly raise capital for a business venture. Each of these options comes with its own set of benefits and drawbacks, so it’s important to which one will best meet your business’s needs.
Synergy Commercial Funding is a private firm with a wide range of financing options for all of your business needs. Contact our team today to get the financing you need.
Are you looking for financing options for your business? If so, Synergy Commercial Funding is ready to help. We offer a wide range of commercial finance services to help businesses of all sizes achieve their objectives, whether it’s purchasing new equipment or purchasing a new commercial property.
Interested in creating a second line of income just by talking with your existing network? Want to help the economy grow by helping businesses around you grow? Think about becoming a Synergy Commercial Funding Partner. Visit our "Referral & Broker Program" to learn more.
