Going to a private lender, or someone who will loan money with the agreement that the loan will be paid back in time, offers favorable payment terms and interest rates. This can save money in the long run.
What purchases are worth going to a private lender and not to a bank? The biggest purchase that many encounter would be obtaining a first home (or renovating a home via a builder loan). Buying or renovating a home with funds borrowed from a private lender or a builder loan could help cut down the costs and interest that come with a standard mortgage.
A smaller private loan for purchasing or maintaining a car is often a popular way to use private lending. But what about when you need funds for something other than your personal life? For businesses, consider seeking private lenders for working capital to obtain supplies, inventory, or even payroll costs if the need comes up. Going through a private lender may help maintain control over your business (unless a portion is relinquished under the terms of the loan) and keep a company afloat during lean times.
These are the most common instances where people will need a private lender. Whenever you pursue something like a builder loan, you should ensure your financial position is secure enough to repay any debts incurred.