Close the Funding Gap with a Private Money Lender

In a previous post we talked about the gap between available funds and the financial requirements of the project. One way to address this gap is with a Private Lender.

Private Money Lenders

Private money lenders are individuals or small companies that offer loans based on the value of the property rather than the borrower’s creditworthiness. This is beneficial for both commercial and residential investors who need fast cash to close deals or cover unexpected costs.

This is almost certainly going to be a person you already know. They will loan you what you need based on their confidence in you, your skills, and the numbers of the project itself. Their loan will not be in first position, so expect higher than market interest rates.

Advantages:

• Quick access to funds.

• Flexible terms and conditions.

Disadvantages:

• Higher interest rates.

• Shorter repayment periods.

Closing the funding gap is essential for any project to move forward. Private money lenders can be a good source for this.