Private Funding Loans
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What is a private funding loan? Is it the same as a regular private loan from a private lender? Or is it a different thing? Let’s discuss that a bit quicker now.
Private funding loans and private loans are pretty much the same; it’s just that, they’re used in two (2) different contexts.
Private Funding Loans vs. Private Money Loans
For one, private loans are more commonly used for already established businesses that are looking to grow, expand, and develop.
Private funding, on the other hand, is an option for new entrepreneurs, new small businesses, and businesses to be able to start their way into the market.
To illustrate, small business A, which was established back in 2018, needs about $500K to grow the business into certain cities of the state. What would small business A need? A private loan! Small business A would not want a bank loan because a bank would not allow them to borrow $500K. So, they’ll go to private lenders for it. Entrepreneur A is looking to build a new restaurant in South Beach, Miami. In order to start, Entrepreneur A needs a loan. Since this is Entrepreneur A’s first time taking a loan out, he wouldn’t be able to borrow from a bank. Why? – banks usually ask for a ton of requirements and documentation before approving loans. So, what Entrepreneur A would do is he would approach a private lender and ask for a private funding loan out of the bucket.
Private Loan Example
Private Funding Loan Example
Do you see the difference? They’re technically the same per se, but in the business world, they’re used in two (2) different ways.
Types of Private Funding Sources
Private lenders aren’t the only sources you can explore to get the funding you need for your ideas. In fact, there are a lot more other sources you can consider, especially if you don’t want to be stressed about repaying the loan out with interest.
So, without further ado, here are a couple of other sources that you can try to fish out for some business capital:
For an entrepreneur who wants to keep his friends and family close, he’ll think that they’re the easiest ones to approach whenever he would need the capital for his business. While it’s an uncommon feat in the world of business, many people still attempt to ask for financial support from friends and family. If you’re not sure what crowdfunding is, don’t worry, you’re not alone! Crowdfunding is a term used in the business world that simply means fundraising or kickstarting a business through the money of people who believe in the goal. For instance, if you start a crowdfunding campaign; and your goal is to raise $100K, all the people who invested to build that $100K would benefit from all the sales and revenues you would make. There are people who don’t believe in debt or in credit when starting out a business. In fact, some use their college savings or their emergency fund to start and shell out capital for their business to start. This isn’t bad at all – however, you run the risk of not getting anything out of the money you’ve invested if your idea flops or fails. At least, you didn’t grow your debt, right? Akin to the world we live in, the business world wouldn’t move smoothly without the guidance of “angel” investors. Angel investors, for you to understand, simply are wealthy people who help start businesses. They lend you money and instead of asking interest in return, they’ll want a portion or a stake in the business. For instance, if you approach Angel Investor #1 and you work a deal out that he’ll lend you $1 million, but he wants 30% in the business; while Angel Invest #2 says he’ll lend you $500K, but he just wants 10%.
Family and Friends
Crowdfunding
Personal Investment (Personal Assets)
Capital and Angel Investors
Those are the other options you have for private funding loans! Out of all these, private lenders seem the most reasonable. You only pay the loan out plus interest, you don’t share your company that’s still growing and being carried out to the surface.
Here in Florida, many entrepreneurs are glad that they worked with us here at Florida Commercial Real Estate Loan Group for the private funding loans they needed. Many of them commented on the service we gave, saying that it was as good as how they would experience it with angel investors, but they wouldn’t fear the risk of sharing their company.
Apart from private funding loans, we here at Florida Commercial Real Estate Loan Group also offer a ton of other loaning and lending services, such as:
- Operating Lines of Credit
- Commercial Land Loans
- Condotel Financing
- Multi-Family Loans
- Commercial Mortgage Loans
- Hard Money Loans
- Owner Occupied Loans
- C&I Loans
- And Many More!
Through our private funding loan program, we’ll help you tailor-fit the specific loan program you need!
We will never leave you hanging without any clue of what you need to get. We’ll help you and we will make sure you get the most out of the loan you’re going to apply for.
Why Work With Florida Commercial Real Estate Loan Group?
Out of hundreds of options for private funding loans, why should you choose us here at Florida Commercial Real Estate Loan Group?
For many years, we have brought businesses back from the grave to the market again by simply letting out a hard funding money loan. Furthermore, we have helped and assisted dozens of entrepreneurs in starting their businesses!
When it comes to private funding loans, you wouldn’t ask for anything else should you choose to work with us here at Florida Commercial Real Estate Loan Group!
Call us, email us, or reach out to us via our social media pages to know how you can get the most valuable and the lowest-risk private funding loans you can get in the market!
We service all counties and cities throughout South Florida. However, if you need any of these services in other cities throughout the state of Florida, please contact us. See what services we offer below:
