The 2008 financial crisis tightened credit and capital markets, making access to loans almost impossible for borrowers. As the economy recovered, the demand for debt financing grew, but banks were unwilling to make the same loans they had been making before the financial collapse.
iBorrow CEO Brian Good authored an article published in Commercial Investment Real Estate magazine discussing how alternative lending has taken on a larger role over the past few years, as well as the advantages private lenders have compared to banks. Addressing the shortfall between borrower demand and the supply of lendable bank funds, private lenders have become a formidable option to fill the gap.
Private lenders have the ability to cherry-pick loans without being subject to blanket regulations. For private bridge lenders, this opportunity has allowed numerous possibilities compared to traditional bank lending.