Private loan or bank: which one suits you
We do not compete with banks on rate, and we should not. We compete on speed, flexibility, and the cases banks do not serve.
Side by side
| Bank | Private financing | |
|---|---|---|
| Rate | Lower | Higher (14.0% per year in our case) |
| Term | Up to 20 or 30 years | 24 + 12 months |
| Time to answer | Weeks or months | Days |
| Credit history | Decisive | Not reviewed |
| Income | Must be formal and documented | Flexible |
| Security | Mortgage | Guarantee trust |
When a bank makes sense
If you qualify, have documented formal income and are not in a hurry, a 20-year bank loan will almost always be cheaper. Try that first — nobody should pay 14% for something they can get at 8%.
When private financing makes sense
- The bank already said no, or the application expired unresolved.
- Your income is real but does not fit a bank’s format: self-employed, commissions, rental income, your own business.
- The opportunity has a deadline that bank timelines cannot meet.
- You need liquidity for a defined period and already know how you will exit.
- The property has value but a bank will not take it: a farm, a lot, a rural property.
The question that matters
Before comparing rates, define your exit: with what money will you repay, and by when. A private loan used well is a bridge to something specific. Without that exit, no rate is a good rate.