HomeSec put the “PRIVATE” into Private Business Lending
Finding a TRUE Private Business Lender has become rare these days. Many so-called private business lenders are more like banks, which is bad news for small businesses.
This is because of the flood of institutional money that is now backing so many brands that were once known as “private” lenders. HomeSec Business Finance on the other hand chose not to go down this road of taking on institutional money.
Don’t get us wrong. HomeSec has been approached by many large institutions over the past few years, and the lure of ‘cheap’ money has been attractive, at least on the surface. However, we have shied away from taking on institutional money due to the restrictions, costs and complexities that come with it.
Why Institutional Money is a Bad Fit for Private Business Lending
Traditionally, private business lending has always been about speed and flexibility. It’s also been about the private lender often taking a punt on those lineball deals.
Why? Because they can, because it’s their own money. It’s not a banks money.
Unfortunately, when a so-called private business lender is lending money originating from a bank or large financial institution, it comes with so many limitations and restrictions. These restrictions remove the good old fashioned lender discretion, and often comes with slow and clunky processes.
Plus almost all secured business lenders who use institutional money to fund their loans need to do sworn valuations on every security property. This is slow and expensive, and we all know that Valuers and Private Lending is like oil and water. The valuer will often heavily mark the property value down, to protect their own skin. The outcome is the client has paid thousands of dollars, and waited 1 – 2 weeks or more, only to be told their property is worth far less than what the market value is.
Why is it Bad News for small business owners? Let’s face it, when you need money right now (TODAY), you need it today…. not in 5 – 10 days time. In a weeks time, its often all too late.
Genuine Private Business Lenders fill this necessary need, and it’s literally why we exist. We fund business owners who need access to funds RIGHT NOW, and only a genuine private business lender can do this.
We do acknowledge that if you have the time to wait, and you don’t mind paying for the sworn valuations, business lenders using institutional money will often have a lower interest rate. So there is that upside, although loan flexibility is often very limited.
WHY? Lenders with Institutional Money and Genuine Private Lenders can be likened to a Fixed or Variable Home Loan. Fixed will be cheaper, but you get almost no flexibility, plus there are huge fees if you repay early. Whereas Variable comes with lots of flexibility but is a little more expensive.
The Benefits of a True Private Business Lender
We should stress that we are talking about secured short term caveat loans, business bridging loans, and private 1st and 2nd Mortgages. We are not referring to other forms of business lending such as cashflow lending.
15 benefits of using a true private business lender such as HomeSec Business Finance are:-
- We can approve loans within 2 hours
- We are able to fund loans within 24 hours from the time you first apply
- We don’t do sworn valuations
- We don’t need to see tax returns or cashflow records
- We don’t have an issue with low credit scores, loan arrears, or tax debts
- We often just require a rates notice, mortgage statement and ID. That’s ALL!
- We lend almost anywhere in Australia and New Zealand
- We can push our maximum LVR right up to 85% in certain circumstances
- We pay our brokers the same day the loan is funded
- We don’t require mandates from brokers and there is no clawback
- We make our decisions in-house and you can talk to the decision-maker at any time
- We lend off our own balance sheet, so we know we have the funds to lend
- We don’t mind taking a punt on some deals that others won’t touch
- We allow our clients to extend their loan with no rollover fees
- We rebate unused months of interest if a client repays early, and there are no penalties
Yes the rate might be a little higher, but if you need certainty that you can get the funds in 24 hours, or your property isn’t in a capital city, HomeSec is the Go-To private business lender, and has been since 2004.