Difference Between Private Credit, Institutional Lending, and Banks

Hi there,

Welcome to Loancater’s weekly newsletter. This is approximately a 4-minute read.

In today's newsletter, we’re going to go over the different types of creditors and their pros & cons.

We are going to go over…

1. Private credit

2. Institutional Lending

3. Banks

Schedule a FREE strategy session with us here (link) or apply here (link) for a business loan.

Actionable Tips

If you're looking for fast capital & complex deal scenarios go through a private credit.

If you are looking for long-term capital that is cookie cutter OR a large amount of capital for a creative scenario go through an institutional lender.

If you're looking for a large amount of capital in a cookie-cutter scenario(where the deal checks all the dots for the disclosed lending guidelines with no wiggle room) go through a bank.  

Best Link

👁 Credit Report Course Here

Check out this free credit repair guide that’s better than most $500 companies (link)

💰 Loancater’s Application

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✔ Clients Who Worked With Us In The Past

See previous business owners who were happy to work with Loancater (link)

⭐ Different Types of Loans

Type of funding product available in the market (link)

Private Credit 

With private credit, you have the flexibility of deal-by-deal analysis. Additionally, the lenders are also a lot faster and can close at very short notice (depending on the relationship). The biggest pro here is the speed. However, most private credit notes are very short-term.

Institutional Capital

This is the largest source of capital for programmatic deals while retaining some level of flexibility. If you have direct access to decision-makers in the firm you can have them play with the mandate. The biggest pros here are the larger deal size they can offer while maintaining creativity. The con here is that this type of capital is very relationship so you will have no level of flexibility if you don’t have access to top decision-makers.

Banks

This is by far the largest source of capital you can tap into. However, they are the slowest and the majority of their deals are cookie cutters because they have to follow regulatory guidelines. If you have access to a decision maker you can be granted some level of flexibility but anything that’s completely out of the ordinary will be hard to do here.

How I Can Help You

If you like this newsletter and want to work with me, there are a few ways we can do so:

1. You can apply for a business loan here (link)

2. You can apply for credit repair by emailing [email protected] “I want credit repair”

3. You can apply for a free 30 minute strategy session for credit card processing & ACH  here (link)

Or,  you can reply to this email.

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