5/17/2013 · If the private lender’s cost of funds are 7% and its needs to earn a spread of 4% - it has to charge 11% at a minimum or go out of business. Thus, it is easy to see why everyone wants a bank loan as opposed to a private lender loans. But, banks are also opportunistic. While banks can lend out funds at lower rates, they hardly do. Here’s why:If the private lender’s cost of funds are 6% and its needs to earn a spread of 4% – it has to charge 10% at a minimum or go out of business. Thus, it is easy to see why everyone wants a bank loan as opposed to a private lender loans. But, banks are also opportunistic. While banks can …3/6/2017 · Banks see that their main competition (these private lenders) have to charge 10% or more – from our example. Thus, banks know that all they have to do is be below that figure to win your business. Thus, banks can charge 9% or and still beat the competition, according to Emil …3/6/2017 · So, what is better; a business loan from your bank or a business loan from a private lender? The answer is simply the one loan that you can get approved for. According to NCF Commercial Lending, every business owner wants a bank loan. In fact, many business owners think that their bank is the only place they can get a business Loans vs. Private Lender Loans - Business Know-HowPrivate Money Lenders Vs. Bank Loans - Asset ColumnBank Loans vs. Private Lender Loans - Business Know-HowBank Loans vs. Private Lender Loans - Business Know-How

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