When the Bank Says No — What’s Next? Exploring Private Finance Solutions
Being turned down for finance by a bank can be a frustrating and disheartening experience, especially when you have a clear business need or a promising investment opportunity. However, it’s important to know that a rejection from a bank doesn’t necessarily mean your options have run out. In fact, there are alternative paths to securing the funding you need — and private lending is one of the most viable and strategic options for businesses seeking flexibility, speed, and tailored solutions.
Private lenders, such as Renown Lending, specialise in providing alternative funding solutions for businesses, property developers, investors, and individuals who don’t fit the rigid lending criteria imposed by traditional banks. Whether you need funding for a development project, business cash flow, or to seize a market opportunity, private finance can offer a smarter way forward.
Why Choose Private Lending?
Unlike traditional banks that rely heavily on credit scores and complex approval processes, private lending focuses more on the potential of the project and the value of the assets being used as collateral. This makes private finance an appealing option for borrowers who may not meet the strict requirements of mainstream lenders but have viable projects or investments.
Here are a few key reasons why private lending makes sense for many businesses and property developers:
1. No Strict Credit Scoring
Private lenders typically don’t rely on rigid credit scoring systems. While banks often reject loan applications based solely on a low credit score or past financial difficulties, private lenders take a more holistic approach. They focus on the security provided by the borrower’s assets, such as property, rather than just historical credit performance. This means more flexible approval conditions and greater access to funds for borrowers who may have been previously turned down by banks.
2. Flexible Repayment Options
Private lenders are often more flexible when it comes to repayment terms. While banks may impose strict schedules or conditions that may not align with your cash flow or project timeline, private lending arrangements can be tailored to suit your specific needs. This flexibility can be especially valuable for businesses undergoing growth or projects that require significant capital but may take time to reach profitability.
3. Funding Ranges from $200,000 to $30 Million
Private lenders offer a wide range of funding options, from smaller loans of $200,000 to large-scale financing of up to $30 million. Whether you’re a small business owner, property developer, or investor, private lending can scale to meet your needs. This versatility makes it an excellent choice for a wide variety of funding purposes, including property development, construction, equipment financing, and more.
4. Speed and Efficiency
One of the standout features of private lending is the speed at which funds can be approved and disbursed. Unlike banks, which can take weeks or even months to process an application, private lenders offer quick turnaround times. Many private lenders, including Renown Lending, offer conditional approval within 48 hours, meaning you can get the funding you need quickly and efficiently.
Steps to Secure Private Finance
Securing finance through private lenders follows a simpler process than traditional bank loans, though you still need to take a few key steps to ensure a smooth application. Here’s a general outline of what to expect when applying for private finance:
1. Identify Your Security Assets
Private loans are generally secured against property or other valuable assets. This means you’ll need to review your asset pool to determine what you can offer as security. This might include residential or commercial property, land, or other significant assets that can provide sufficient collateral. The value of these assets will be a critical factor in determining the loan amount and the terms offered by the lender.
2. Prepare Basic Documentation
While private lenders typically require less paperwork than banks, you’ll still need to provide some essential documentation. At a minimum, you’ll need:
A project overview: Outline the purpose of the loan, how the funds will be used, and the expected timeline.
Property valuation: Provide an independent valuation of the property or assets being used as collateral.
Exit strategy: A clear plan for how you intend to repay the loan, including any sale of assets, refinancing options, or other repayment strategies.
These documents help private lenders assess the risk of the loan and determine appropriate loan terms.
3. Choose the Right Loan Product
Private lenders offer a range of loan products designed to suit different needs. Some of the most common types of private loans include:
First mortgage: This is a loan secured against the first position on the property, offering the lender the highest priority in the event of default.
Second mortgage: A loan secured against the second position on the property, typically offering lower interest rates than unsecured loans but with a slightly higher risk for the lender.
Bridging loan: A short-term loan designed to cover financial gaps, such as the period between purchasing a new property and selling an existing one.
Choosing the right type of loan for your situation will depend on your specific needs and the collateral you have available.
4. Apply Directly or Through Your Broker
Private lending applications are streamlined, and you can apply directly with the lender or through an intermediary broker. Using a broker can help connect you with the right lender and negotiate the best terms. With Renown Lending, many applications are processed quickly, and conditional approval can be achieved within 48 hours, giving you a faster path to securing the funds you need.
Why Private Lending Is a Smart Solution
Private lending is increasingly becoming a popular choice for those who require quick, flexible funding solutions. Whether you're looking to fund a development project, secure working capital for your business, or invest in property, private lenders offer a more agile and responsive alternative to traditional banks. With fewer restrictions and faster approval times, private lenders are positioned to meet the needs of businesses and investors who require both speed and flexibility in their financing.
If you’re tired of the traditional bank runaround or if your business doesn’t fit neatly into a bank’s rigid lending criteria, consider private lending as a viable option. At Renown Lending, we specialise in providing tailored solutions to help you achieve your goals. With funding available from $200,000 to $30 million, we can help you move forward—faster.
