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 UCapital 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 UCapital 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.
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.
Let us help you secure your loan
FIND OUT IF YOU QUALIFY NOW for Private funding
The problem with valuations
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 UCapital 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 UCapital
Many brokers make high and mighty promises and tell you all sorts of things that sound way too good to be true. The reality is if something sounds too good to be true, it probably is.
The truth is there are only 10 or 12 reputable private lending players in the marketplace with BEST PRACTICE solutions and we have good relationships with all of them.
If there is a viable solution to be had, we know of it and will provide it for you.
Difficult funding scenarios
At UCapital we have helped people through some horrendously difficult times. For example, we’ve exited clients out of receivership! Yes, we’ve taken clients from being in receivership to getting a private loan, all the way to being in a bank.
We take pride in being ethical without a clear and beneficial exit strategy for our client.
It's a mistake dealing with lenders directly
Brokers know more lenders so they will ensure you get the best deal. We at UCapital protect our customers by fitting them with the right lender. Business lending is complex with a variety of solutions. Brokers help you navigate the solutions out there.
Private Loans & Serviceability
Private lending may be the best solution for you with rising interest rates. Banks look at income and other factors that are severely affected by interest rates at the moment whereas private lenders simply look at the value of your property and the equity you have in it. If there is enough equity found for your needs, the deal is as good as done.
What our clients have to say
Do you have questions about which product is right for your business?