Risks
In any lending arrangement there are risks involved. There are a plethora of reasons for default, with the primary ones being lack of regular payments being made or the facility not being paid out in full as agreed to. To mitigate these risks we do a thorough vetting of the borrower and ensure both the payment amount is reasonable and sustainable and the exit strategy is sound. Other risks involve change in interest rates or property values. Our loans are always on variable rate terms to negate changes in Prime Rate, we make reasonable loan-to-value decisions, as well as all loans are on a demand basis.
Returns
The most competitive rates a borrower can received is through a traditional lender such as a bank or credit union. The second being a finance company. For some borrowers, neither of those are options due to any number of reasons. Where we add value is providing financing to borrowers who's requests don't fit the traditional moulds, aren't offered elsewhere, and/or need rapid funding. For this we charge a premium well above our competitors. Our goal is to be a short term source of capital and not their long term lender which will provide the client with more competitive interest rates.
