Private Lending
Looking for alternative finance to fund a project or acquisition? Private Lending may be for you...
Private Lending or Private Loans are money pooled by private investors, boutique lending firms, solicitors funds and family offices that are lent out via a 'fund manager' or private lender.
These lenders operate in an unregulated market providing 1st and 2nd mortgage arrangements. They have higher establishment fees, higher interest rates and are for shorter terms ranging from 3 months to 3 years. Private Loans require a clear exit strategy from the outset, which could be the sale of an asset, sale of other assets, refinancing or clearance from cashflow.
Private Loans can range from $100,000 to $100,000,000 depending on the funder, sponsors and the project.
Key benefits of using Evoke:
- Advice from award-winning mortgage and finance brokers with over 25+ years experience
- Access to reputable Private Lenders who have a track record of ethical dealings with their clientele
- Insight on commercial exit strategies to assist with moving you from a Private Loan to a Bank Loan in a reasonable time frame
- Access to your own personal finance broker for the life of your loan
For more information about Private Lending, request a call below.
Disclaimer: Subject to the lender's terms & conditions and credit approval criteria. Please ensure you seek your own personal legal and taxation advice for your situation.
Private Lending FAQ
What is private lending?
Private lending involves loans provided by private investors, institutional investors, family offices. These loans are typically arranged through a fund manager or private lender and are not regulated like traditional bank loans.
What types of projects can be funded through private lending?
Private loans can be used for a variety of projects, including real estate acquisitions, construction, development, and refinancing. They are suitable for both residential and commercial purposes.
What are the benefits of private lending?
Private lending offers several advantages:
- Flexibility: Private lenders can offer more flexible terms compared to traditional banks.
- Speed: The approval process is often faster, allowing for quicker access to funds.
- Accessibility: Borrowers who may not qualify for traditional loans can often secure funding through private lenders.
What are the typical terms of a private loan?
Private loans usually have higher interest rates and establishment fees compared to traditional loans. They are typically short-term, ranging from 3 months to 3 years. A clear exit strategy, such as the sale of an asset or refinancing, is required from the outset.
How much can I borrow through private lending?
Loan amounts will vary depending on the project. You can reach out to our Finance Brokers who can give you an idea of what to expect.
What is required to apply for a private loan?
To apply for a private loan, you will need to provide detailed information about your project, including the purpose of the loan, your exit strategy, and any supporting documentation required by the lender depending on your request. A finance broker such as Evoke Capital can be extremely valuable in the private lending process, in not only opening up opportunities to the right lenders but helping you with all the necessary information and documentation to ensure your chances of securing the right private lender for your venture.