As the private lending market grows, purist private lending is quickly becoming a thing of the past. Purist private lenders have several key features that distinguishes them from the rest.
Private loans with no credit check
Purist private lenders don’t care about your credit history or any previous defaults. They are only focused on the quality of the security being provided. As such they do not look at your credit history, nor do they do searches. As part of a loan application though, their lawyers will typically check if you have any existing lawsuits and previous bankruptcies. Even previous bankruptcies, does not necessarily hinder your ability to get a loan.
Given the lack of credit checks by purist private lenders, this means deals can be transacted far quicker and far easier than banks, second tiers and a number of other private lenders who look at credit scores and defaults.
Check your credit score beforehand
If you’re curious about your credit score, you can check here.
Private loans with no financials or No Docs
Purist private lenders aren’t interested in your financials nor will most ask for them. If they do ask for them, it is usually because they wish to have confidence about your ability to service the loan if you haven’t provided enough evidence of an exit (sale of asset or refinance) or to meet any legal obligations they may have.
Check your company status with ASIC
One of the things we do suggest you do though, is ensure that your borrowing entity / SPV / ACN / ABN is active, and you can check here with ASIC.
Private Loans with tax debts
Whilst typically ATO tax debts are seen as unsecured loans, many private lenders in the market now are wary of lending when tax debts exist or unless they have been paid out as part of settlement. Purist private lenders are not concerned about tax debts, especially when things have been structured in the right way.
They are self funded.
As the private lending market grows, more and more private lenders are being funded through wholesale bank facilities, other large investment groups or an aggregation of smaller investors into a fund. Whilst this provides them with a large volume of funds, ultimately, they are bound by the conditions of those providing the funds. This includes LVR restrictions, credit score restrictions, and deal types. Things only get more bureaucratic and take longer when an “investment committee” is involved ensuring the funds sticks to the rules it is bound.
Purist private lenders are self-funded such as a family office or high net worth investor, or are close group of HNW investors working together. It is their money and their terms. They aren’t bound by the terms of others nor do they need approval from a committee. Deals transact in a far shorter time period, and on far better terms than dealing with most private lending funds.
