Private business lenders (also called direct or alternative lenders) fund with their own capital instead of routing you through a bank. That means faster decisions, more flexible criteria, and a real shot at approval when a bank has already turned you down — in exchange for a higher cost of capital.
Why owners use private lenders
- Speed — approvals in hours, funding in a day or two.
- Flexibility — revenue and cash flow weigh more than credit.
- Access — programs for newer or lower-credit businesses.
- Variety — term loans, lines, advances and factoring under one roof.
Know the trade-off: private capital costs more than a bank or SBA loan. Use it for speed and access — then refinance into cheaper money as your business strengthens.
What private lenders typically want
| Requirement | Typical minimum |
|---|---|
| Time in business | 6+ months |
| Monthly revenue | $10,000+ |
| Credit score | Flexible — many programs no minimum |
| Documents | Application + bank statements |
Compare products: working capital, lines of credit, merchant cash advances, and invoice factoring.
Frequently asked questions
What is a private business lender?
A lender that funds with its own capital — faster and more flexible than a bank, usually at higher cost.
Better than a bank?
Different tool: private wins on speed and access; banks win on rate for strong borrowers.