Steps to Finding the Perfect Private Lender in Montreal

• November 1, 2017

Private lending has offered a perfect alternative to mainstream lending in instances when it is not possible to have the banks loan you money. But for you to be successful via private lending, you should begin by finding the perfect lender who will be willing to offer you the amount of money you need and at terms that are favourable to your current financial situation.

Here is a brief guide to finding such financiers in Montreal:

Understand what private lending is

Regarding private lending, you borrow money from an investor who is not affiliated with any financial institution. They can be lone private investors, or just anyone within your social circles who is willing to give you money. As such, you are likely to get more favorable terms compared to when you are getting the funds from mainstream lenders.

Build your network

For you to find the perfect private lender, it is imperative to know the right persons to approach. This calls for building your network and getting to know the professional lenders in your industry. These may include real estate professionals, attorneys, and your financial advisor. Additionally, you need to have a network of friends, families and colleagues who may not be lenders but would be willing to advance some credit to you based on your relationship with them.

Get your materials

Materials refer to the particular items you will need when pitching to private lenders, and to convince them to give you the money. Depending on why you need the cash, you may have to get your financial statements in order, produce a list of your assets and liabilities, detail income goal projections, and calculate current net worth, amongst other requirements.

Make the pitch

Once you have all the relevant materials in order, plan to make a pitch to the private lender. With the pitch, the aim is to demonstrate to them that yours will be a worthy investment, and their money will not be jeopardized. Be ready to answer all their questions honestly, and don’t try to hide anything from them. They need to trust you before they give you their money.