Understanding Private Funding
Learn what to expect from private lenders and how to get the best deal.
The reality of bridging finance
The reality of bridging finance is that many lenders promise the world but seldom deliver. One reason is access to money.
Lenders claim to have the money when in fact they actually need to raise the money from investors first. If the investors don’t like the deal the opportunity is gone.
At Apple Finance we don’t have this problem. Marcello Pinto, our Director explains why. He also explains what other factors to be aware of when dealing with brokers and private lenders.
Our private to bank solution
Private money is seamless, it’s fun and it’s generally an enjoyable experience. The only negative to private money is that it’s more expensive.
At Apple Finance we are conscious of this, and we know that it’s not a permanent solution for our clients. We know that it’s a bridge. It’s where our clients are now versus where they want to be.
What this means is that we are conscious that private money is a temporary solution. We don’t just give our clients private business loans and then leave them high and dry. That doesn’t make sense and is uncommercial.
What we do is we provide a private loan and structure our client’s finances so that they can exit into a bank solution. And once you’ve exited into a bank solution, we keep working to sharpen that interest rate for them so their payments are as low as can be.
Private funding helps your cashflow
The thing many people don’t realise about bridging finance is that the interest is usually capitalised, meaning that there are no monthly repayments.
So for a period of 3 to 12 months, there’s a pause on your cash flow payments towards your mortgage. This allows you to get time to restructure your finances and get bankable again.
We look beyond credit scores
We look beyond your credit score. What the banks are doing is unfair. They are basically using 35-year-old instruments that determine your ability to repay a loan. These instruments are dated and do not truly consider the potential of the opportunity or business you have.
We look beyond your score and give you the opportunity you deserve.
The truth about LVR
The truth about LVR loan-to-value ratio is that a lot of brokers will try and push the LVR sky-high, meaning that if you have a property development worth a million dollars, they’ll try and leverage you all the way to 80 or 85% of the value of your property. The truth is that we are not here to put you in financial distress.
We’re here to give you money straight away and meet your needs, but at the same time not put you over that tipping edge.
So we are very conscious of getting you into a solution and getting you a clear exit. So we won’t leverage you beyond where you need to go.
Let us help you secure your loan
We look beyond credit scores
The problem with valuations is that many lenders out there in the market don’t give you a true valuation of your property. What they do is beat up the valuation, as in they put pressure on the number downward so they can lend less money and be in a safer equity position. So they conduct an evaluation with the idea of giving you a lower number than you should get and at Apple Finance we don’t do that.
Client success stories
The secret with private lending is that if it’s done right, it can be the most profitable form of borrowing in the world.
The reason being it can give you access to unprecedented opportunities that you would never have with the bank.
Marcello Pinto, our Director explains.
Why Apple Finance
We look beyond your credit score. What the banks are doing is unfair. They are basically using 35-year-old instruments that determine your ability to repay a loan. These instruments are dated and do not truly consider the potential of the opportunity or business you have.
We look beyond your score and give you the opportunity you deserve.
What our clients have to say
Do you have questions about which product is right for your business?
Email us at support@applefinance.com.au to talk about your needs.