Private lenders are more flexible than conventional banks, so they may be a better option depending on your personal situation.
Conventional banks often have inflexible lending criteria and a risk-averse culture, which means even quality borrowers and projects can be rejected.
In contrast, private lenders tend to be more open-minded and entrepreneurial, so they’re more willing to judge loan applications on their merits.
Private lenders may also have more flexible loan criteria, like being willing to wait longer to be repaid or receive a share of the assets instead of money.
On the other hand, private lenders may charge higher fees and interest rates than banks, which is why, if you’re able to secure finance from a conventional lender, that may be the better option.