The Benefits of Alternative Lending for Your Business Success
Traditional bank loans are now secondary, as it has become very complex for banks to lend money to real estate investors for several reasons, such as compliance costs of multiple Acts. Furthermore, low-interest rates and below-average conditions in real estate markets have further complicated it.
Not only real estate investors but small-business owners, developers, and many more have been affected and facing difficulties in borrowing money from banks. Additionally, if a bank grants a loan, it is usually lower than the development costs.
On the other hand, the private lending industry has grown by leaps and bounds, doubled, to be more precise, in the last decade. Since 2016, it is estimated that almost 80% of loan applications from small businesses have been rejected, which helped private lenders get a good chunk of the market to offer their services.
If you’re a mortgage originator, this phenomenon can profit you a lot, as you can grab all these opportunities from the ongoing shift in the lending industry.
Usually, these alternative lenders are not subjected to all the strict norms most banks adhere to. This makes the alternative lenders play a much more free hand while lending money as they can free up some business process rules.
The best thing with alternative lenders is that you can expect a very speedy process, as they can offer you an answer about their decision. Most of these alternative lenders make a loan decision within 48 to 72 hours. Furthermore, most private lenders have cash available to deploy if they approve a loan. Private lenders are also more flexible with your credit score, which makes them a much better option.
In conclusion: With the growth of peer-to-peer lending platforms, borrowers can now access a broader range of financing options. If you’re seeking funds for real estate projects and want to avoid the hurdles of traditional banking, look no further than Fitzgerald Advisors. Our team is dedicated to finding customized financing solutions that fit your unique needs and won’t put your credit score at risk.