26/10/2026
Private lending gets a bad reputation but most people don't understand how it actually works.
It is not loan sharks. It is a legitimate funding option, especially for developers who need to get a project moving without the cashflow pressure of monthly repayments.
Here is how it works. The interest is capitalised, meaning it builds up over the life of the loan and gets paid as one figure at the end when you sell or when the build is complete. No monthly payments eating into your cashflow while you are in the middle of a development.
Once the project is done and you are earning rental income, you refinance into a standard 30 year term loan. Clean, structured and far more manageable than people think.
If you are a developer or looking at your first project and want to understand your options, reach out. Happy to walk you through it.