PRIVATE LENDING: Overpriced Capital? or Strategic Teammate?

As we all know, the first step in assessing a loan is the “who” and “how”. Usually, you have two options: a bank OR a private lender

At first glance, banks are usually the traditional and seemingly “cheaper” way to go, while private lending is often the unconventional seemingly “expensive” route. However, once you dig deeper into the opportunity costs, paperwork, and funding-time, private lending is truly the path worth forging. Whether you’re a new or seasoned borrower, there are a variety of funding avenues using private lending.


While banks tend to solely assess your credit score and P/L statements, private lenders, like Colonial Capital, adopt an asset-based “Personal P/L” method. This tends to be a more holistic, relationship-based approach to borrower assessment and loan approval. While interest rates at private lenders tend to be higher than those at traditional banks, these private lenders offer significantly higher loan-to-cost (LTC) on most property loans.⁣

Ultimately, Colonial Capital’s goal, as your go-to private lender, is definitely the strategic partner. We want to build strong, mutually beneficial relationships, which means prioritizing the overall success-story, as opposed to fixed points on a ledger sheet.


What are your ideas for 2022 projects? Fix-and-flips? Commercial development? We would love to talk through them with you. Give us a call at (602) 224-0745, and check out our website here for more on our Loan Programs.

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