Direct Lenders Funding

If you are looking for a fast loan and need cash quickly, Direct lenders funding may be the answer. Located in New York, these lenders offer many financing options, including acquisition funding, construction loans, mezzanine and senior debt financing. Direct lenders funding also offer private lending, hard money loans, and more. Their programs range from 100% financing on single family and multifamily properties to low-interest, no-payment rehab loans and 3-month seasoning rental loans.How to Start a Business: A Startup Guide for Entrepreneurs [Template]

In general, direct lending involves paying fund management fees and incentive fees to management teams that source and manage the loans for investors. These management teams take care of all the sourcing and relationship-building, while investors only need to provide funding. Qualifications vary from provider to provider. For example, Apollo’s WhiteHorse fund lends to lower mid-market companies in healthcare, manufacturing, retail, and food and agriculture. It also has a fund called H.I.G. WhiteHorse, which aims to provide $12 billion of finance to companies by 2020.

While direct lenders tend to have better terms than institutional borrowers, they do not like to forgo financial covenants and take on more bond-like capital structures. As a result, they generally receive higher indicative pricing. Also, since no market check is performed, they do not have the opportunity to sell at the best market clearing price. This means that direct lenders often can’t adjust if the market declines or their terms change. They may also require monthly financials rather than quarterly, which is a downside of direct lenders funding.

In addition to private debt, direct lending is a form of private lending. In this case, borrowers deal directly with lenders without a middleman. This allows direct lending to be more flexible and customizable to the individual borrower’s specific needs. This type of funding may be the right option for you if you want to diversify your asset allocation. It may be an excellent option for you if you want to take advantage of the low-interest rate opportunities.

As interest rates remain historically low, direct lenders are a great option for investors. The low-interest rate environment means that they will be a lower-risk alternative than private equity. This is one reason why many investors have turned to direct lenders for funding. The low interest rates mean that direct lenders are still the best option for investors seeking to generate an income in a low-risk environment. You can even get a lower interest rate on your loans.

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