private lending
Non-bank financing source
Private lending is financing provided by individuals or non-bank entities rather than traditional financial institutions.
Private lenders—often wealthy individuals, investment groups, or specialized firms—offer loans that banks won't, typically at higher interest rates but with faster approval and more flexible terms.
Common in real estate: She turned to private lending when the bank rejected her application.
Also called hard money lending when the loan is secured by property.
- hard moneyMetallic legal tender
- collateralSecurity for debt
- interest rateCost of borrowing money
- high interestCostly borrowing fees
- borrowerOne who takes temporarily
personal guarantee · skin in the game · promissory note · default · foreclosure · equity · real estate · flip · trust deed · second mortgage · underwriting · due diligence · principal · origination fee · short-term · asset-based · credit risk · handshake
private lendingbank lending
Issuing loans professionally
federal loans · FHA loans · conventional mortgage · VA loans · Fannie Mae
private lendingequity investment
Acquiring ownership in business
private equity · venture capital · public offering · crowdfunding · grant funding
private, lending, privacy, privately, privatize, privatization, privation, privy, privilege