The role of private credit in financing large-scale projects
For years, businesses needing finance have turned to banks. But in today’s fast-moving world, many are finding that traditional lenders can’t always meet their needs. Slow approval times, rigid lending criteria, and a lack of tailored options have left businesses searching for better solutions. That’s where alternative funding comes in.
What is alternative funding?
Alternative funding refers to financial solutions that don’t come from traditional banks. Instead, businesses borrow from peer-to-peer lenders, private investors, or use financing options based on their assets or invoices. These options provide businesses with faster, more flexible access to capital.
Why businesses are turning to alternative lenders
The rise of alternative finance isn’t just a trend—it’s a response to real challenges businesses face. Here’s why more businesses are moving away from traditional bank loans:
1. Faster decisions and funding
Unlike banks, which can take weeks or months to process loan applications, alternative lenders often provide approvals within days. This speed is crucial for businesses that need to act quickly—whether it’s securing a new office space or managing unexpected expenses.
2. More flexible lending criteria
Many banks have tightened their lending rules, making it harder for small businesses, startups, or those with variable income to get approved. Alternative lenders take a broader view, looking at the business’s overall potential rather than just a credit score.
3. Bespoke solutions
Traditional loans tend to follow a one-size-fits-all approach. Alternative finance, on the other hand, offers solutions tailored to specific business needs—whether it’s bridging finance for property purchases or invoice financing to keep cash flow steady.
How private credit is supporting the property market?
For property developers, private credit is becoming a key tool in financing new projects, acquisitions, and refurbishments. Bridging loans, mezzanine finance, and development loans are all forms of private credit that provide fast, flexible capital to keep projects moving.
With the UK property market evolving and interest rate changes affecting traditional borrowing, private lenders are stepping in to fill the funding gap. This ensures that large-scale property transactions can continue without delays caused by restrictive banking policies.
Is private credit the right option for your project?
Private credit can be an excellent solution for businesses and developers who need high-value funding quickly and on flexible terms. However, it’s essential to assess the costs, repayment structures, and long-term impact before proceeding.
At Cotterell & Cotterell Commercial Finance, we help businesses explore the right funding options for their projects, ensuring they secure the best possible financial solution. If you’re considering private credit for a large-scale investment, get in touch with our expert team today.
