Private Finance – Your Alternative Funding Source

Written by admin on March 29th, 2011

“Where to go…
…when the bank says “No”?

Private Finance is designed to suit those customers that fall outside the normal lending parameters and need a more creative approach to meeting their financial needs. Normal banking institutions, who are governed by Mortgage Insurance and credit funding guidelines, restrict their ability to fund the applicants which fall outside their allowable lending parameters. Hence, why private lenders have rapidly grown and have found a specialized position in today’s finance market, to help customers who are currently facing situations similar to the follow;

** Their current finance lender is threatening to foreclose on their property.

** They are behind on their repayments and need urgent positive assistance.

** They have creditors knocking on their door.

** Require urgent help to clean up their financial situation for 12 months or more.

** Looking for financial relief until their situation improves.

** Or they might have an unusual funding proposition that banks will not cater for.

On the whole private lenders/ funders would still look for the some information and will conduct a similar due diligence as the banks to make a positive funding decision in a short period of time.

Most private lenders are specialists who engage in higher risk ventures and mortgages because they clearly understand both the opportunity and risk associated with selected mortgage types or market commercial segments. Private lenders will not only fund projects the banks reject, they will creatively structure your loan repayments allowing them to be a very helpful short to long term financial resource.

The finance terms of these loans can either be for one month to one year, and often you are able to “capitalise” or pre-pay the interest on the loan during that term, so no need to worry about scheduled monthly payments. Generally, private lenders will be more than happy to roll over the loan at the end of the term for a further agreed period. Private lenders will lend up to 70 – 85% of the value of your property.

If a customer requires this type of funding, it would be paramount to find specialist finance brokers who have direct associations with complete understanding of the requirements for private funding. Their vast and direct association would find and place you with the most appropriate private funder for your unique situation.

Private Finance can definitely be the alternate funding source when all else fails.

Australian Mortgage Centre

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