No matter how valuable your business may be, financial institutions are notoriously difficult when it comes to granting loans to small businesses.
On the other hand, private mortgages can be a great alternative to traditional loans.
Here are the 3 advantages of private mortgages and how they can help you grow your business.
1) Less qualification required
Unlike banks, private mortgage lenders are less concerned about your ability to pay your debts.
What guarantees the repayment of a private mortgage is not the individual, but the property of the individual.
This means that if things go wrong, they will seize and sell the property to get their money back.
2) A faster process
The private lender is more concerned about the guarantee put by the property than by your financial situation.
This means that the process of acquiring the mortgage is much faster than with a financial institution.
Once you have established a relationship with a lender, the process can be even faster, which can be beneficial in the short term.
Because you are not dealing with an institution that has to abide by rules and regulations, private mortgage lenders tend to be more flexible with certain aspects of your terms and conditions.
For example, you could adjust your payment dates to suit your situation.
The most obvious reason why you should consider a private mortgage is to be able to expand your business opportunities.
Perhaps your business is booming and you want to make sure that it continues in this trajectory with the help of advertising campaigns.
Or you want to make sure your inventory is always responding to demand. Or your business absorbs too low profits and you need to circulate money to stay afloat.
Or maybe your equipment becomes obsolete and you need to reinvest in new tools in order to keep up with current trends.