top of page
PRIVATE LENDING
Definition
Funds from private lenders or investors (individuals, mortgage investment corps, private equity).
Who Provides It
Private individuals, private mortgage lenders, specialty lending companies.
Eligibility
More flexible; may focus on collateral value over creditworthiness.
Loan Amount
Can be small or very large, but depends on lender risk tolerance and collateral.
Risk to Lender
Risk fully borne by private lender; they often mitigate risk by charging higher rates and securing strong collateral.
Collateral / Security
Almost always secured by collateral (real estate, equipment, receivables); lenders may take aggressive enforcement rights.
Interest Rates
Higher (often 10%–30% annually). Short-term focus; risk premium is significant.
Fees
Higher fees common (lender fees, broker fees, legal costs).
Use of Funds
Very flexible — can fund deals banks won’t touch (e.g., bridge financing, distressed situations).
Application
Through private broker networks or direct negotiation with lender. Often faster approval.
Approval Speed
Fast (sometimes days), since requirements are lighter.
Best For
Borrowers who need fast funding, have poor credit, or unique situations that banks/CSBFP won’t finance.
bottom of page