Education2025-01-08

Private Lenders vs Banks: Which is Right for You?

Comparing private lenders and traditional banks in Australia. Understand the key differences in approval criteria, speed, and flexibility.

By Introducr Team

# Private Lenders vs Banks: Which is Right for You?

Choosing between private lenders and traditional banks depends on your circumstances, timeline, and financial situation. Here's a comprehensive comparison.

## Speed of Approval

**Private Lenders:** 24-48 hours typical
**Banks:** 2-8 weeks typical

## Approval Criteria

**Private Lenders:**
- Focus on property security
- Flexible credit requirements
- Consider deal viability
- Accept complex situations

**Banks:**
- Strict credit scoring
- Income verification essential
- Conservative lending policies
- Standard situations preferred

## When to Choose Private Lenders

- You need funding urgently
- You have credit challenges
- Your situation is complex (self-employed, multiple properties)
- Traditional banks have declined you
- You need short-term funding

## When to Choose Banks

- You have excellent credit
- You can wait weeks for approval
- You need long-term funding (10-30 years)
- You want the lowest possible rate
- Your situation is straightforward

[Connect with private lenders](/connect) or [learn more](/how-it-works).
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