Private Lending: Frequently Asked Questions.

Private lending involves individuals or non-institutional entities providing loans to borrowers outside of traditional financial institutions. These lenders, which can include private investors, wealthy individuals, investment groups, or specialized lending companies, offer financing for various purposes such as property developments, property investment, small business financing and cash out / equity releases.

Private lending is predominantly secured, with lenders often requiring assets such as property or equipment as collateral.

Private lending can offer faster approval and funding timelines compared to traditional lenders. Mercer Funding Group works efficiently to connect borrowers with lenders, potentially allowing for quicker access to funds.

Private lending, despite its higher costs, offers several key benefits:

• Flexibility in loan terms, repayment schedules, and eligibility criteria.

• Faster access to funds compared to traditional lenders.

• Catering to a diverse range of borrower profiles, including individuals, small businesses, real estate developers, and investors.

Private loans are typically tailored for business purposes. The borrowing entity cannot be an individual, as funds are often required for business-related activities. Accepted business uses may include purchasing commercial property, starting or acquiring a business, paying off business or tax debts, securing working capital, or financing property development activities. Contact us to determine if your scenario is suitable.

Yes. At Mercer Funding Group, we work with you to ensure a clear exit strategy for repaying the loan, especially in short-term financing arrangements. This may involve refinancing with a traditional lender, selling the underlying asset, or generating income through other means.

Yes. It's crucial to obtain independent legal advice to complete your due diligence and understand the funding conditions set by the Private Lender.

Yes, private lending may still be an option if you have equity in your property. Mercer Funding Group can assist in providing short-term funding solutions even with a low credit score.

Yes. Private lenders assume a higher level of risk compared to traditional banking institutions. To mitigate this risk, private lenders typically charge higher interest rates and setup costs to reflect the increased uncertainty associated with the transaction. However, Mercer Funding Group endeavors to work with prospective lenders to minimize these costs for our clients.

Transparency is crucial in private lending. Mercer Funding Group ensures borrowers are fully informed about any fees or charges associated with their loan before proceeding.

Missing a payment on your private loan can result in late fees, additional interest charges, and negative impacts on your credit score. Communication with your lender is crucial if you're facing financial difficulties to explore repayment options.

Private lending, like any loan, can impact your credit score based on how repayments are managed. Mercer Funding Group advises timely payments to maintain or improve creditworthiness.

Prepayment penalties vary among lenders and loan products. Mercer Funding Group ensures borrowers are aware of any prepayment terms associated with their loan before finalizing the agreement.

Yes, Mercer Funding Group offers convenient online application options, allowing borrowers to initiate the loan process from the comfort of their homes or offices.

No. Mercer Funding Group acts as a facilitator in connecting borrowers with Private Lenders. Leveraging our extensive network and commercial knowledge, we put together funding packages to present to potential private lenders. Our aim is to secure favourable funding packages for our clients.

Mercer Funding Group distinguishes itself through personalized service, transparent lending practices, and access to a diverse network of reputable lenders. We prioritize customer satisfaction and strive to exceed expectations in every interaction.

Mercer Funding Group provides personalized assistance and guidance at every step of the loan process, from initial consultation to loan approval and funding.

Getting started is easy! Simply reach out to Mercer Funding Group through our website or contact us directly to schedule a consultation. Our experienced team will assess your financial needs and guide you through the process of securing the right financing solution for you.