Private lending solutions have been gaining popularity for a number of reasons. Private lending solutions offer an ease of accessibility, flexibility, and customization not found in traditional loans. With projected interest rate hikes from banks, as well as other stipulations, more entrepreneurs are moving away from traditional debt structures to embrace private lending solutions.

Private Lending Solutions Are Accessible

Traditional loans have some very high requirements. Businesses need to have high credit ratings, an established financial history, and in some cases and established record of borrowing and repaying bank loans. The requirements are frequently inaccessible to small and emerging business owners, often leaving them to fund operations out of pocket. Private lending solutions take a much different approach. Many of the programs, such as accounts receivable financing, merchant cash advances, purchase order financing, and others do not hinge upon credit ratings. Some private lending programs do not even require an established financial history.

Private Lending Solutions Can Be Customized

Bank loans tend to to be rather inflexible. The one size fits all approach to lending often locks business owners into an agreement where the only thing that seems to change is the interest rate. Banks frequently have limits on the amounts they can offer to businesses, which frequently does not meet the full amount needed. Private lenders are usually people from the private sector who have run successful businesses and understand the needs of entrepreneurs. These people can arrange solutions quickly and efficiently, so there are no delays due to red tape. Private lenders can also customize financing solutions to help entrepreneurs reach their milestones without placing a strain on cash flow. The experience in the private sector allows private lenders to go beyond the rigid programs of banks. After all, if businesses cannot get the financing they need in such a way that it promotes success, the entire economy stagnates, and no one wins.

Financing That’s Independent Of Banks

In 2018, financial analysts are projecting up to four interest rate hikes from banks. By June the odds are high that interest rates will rise by at least 50 basis points. For small businesses, that can make loans an even bigger burden than they already are. Private lending solutions offer competitive interest rated which are not impacted by arbitrary interest increases dictated by the Fed.

At METRIX Capital Group, we are private lenders dedicated to providing solutions designed to help businesses grow and succeed. Contact our offices to get started today.