There’s no arguing the utility of private loans and their benefits exist largely because they sit outside the protection of consumer credit laws.
The application and assessment for a private loan is relatively simple. If the applicant is a company and there exists sufficient equity (usually in property but sometimes equipment, machinery or luxury cars) you’ll find yourself approved. Many lenders prefer interest to be deferred for periods of 6 to 12 months which means they’re great for cashflow if you have a solid exit strategy.
There are some excellent private lenders in the market but given the unregulated nature there are those that charge fees without the capacity to settle. Also, whilst it’s common for brokers to charge fees in this space it’s not uncommon to hear stories of business owners looking for a private loan who have nothing to show for many thousands of fees paid after googling their way through different ‘providers’.
Get a referral or engage with a professional in this space that has a proven track record of settling the amount of funds you require.
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If you’ve been in business for any length of time it’s almost guaranteed you’ve heard along the way you must have 2 years of financials