A private money loan has various aspects to it. First of all it differs from loans taken by financial institutions such as banks. There are a number of reasons why investors as well as business personnel go in for private money loans. Here are the most important ones:
a) On an average a private lender toronto
can underwrite as well as fund a loan in a time period which could be from 7-21 days. The banks however for the same loan would take around 90 days. The time period of the private lender Toronto is generally conducive to the kind of deals that the investor wants to finance.
b) The lending by a private lender Toronto is based on the underlying value of the property. So the borrower does not need to worry about their credit rating or they do not need to worry about their past bankruptcy, foreclosures and short sales.
c) The borrowers who receive private money are more in control of their loan rather than if they had to take it from a lending institution like a bank. The borrowers of these private money loans do not need to have equity partners just because they have taken the loan.
d) The loans are offered for a shorter period than those of other financial institutions and so there are lesser risks due to the accruing of late penalties.
e) These private money loans allow the borrowers as well as investors who are independent persons to expand their business, to diversify and for so many other purposes. These loans guarantee predictable sources of funds.
f) When a person borrows from a private lender Toronto, the procedure is most efficient and quick.
h) However, private lenders may not lend to all businesses or all niches. They usually lend to specialized niches.