CRE Private Credit Loans: A Better Option for Borrowers

  • November 9, 2023

Commercial real estate (CRE) investing relies on more than simply finding the ideal property. For most CRE investors, it requires a lending partner who offers flexible financing suited to a project’s unique needs. 

National Banks are pulling back on lending in the face of the current economic uncertainty, rising interest rates and an anticipated increase in defaults. In turn, private credit loans have quickly emerged as the go-to financial solution with tailored lending solutions for well-healed CRE investors. 

That is why it is essential CRE investors understand all the incredible benefits of private credit loans from AVANA Capital. After all, it could mean the difference between receiving the financing you need and being turned away by a traditional lender. 

Personalized Qualification Requirements

CRE investors experience more individualized qualification criteria from private credit lenders compared to traditional banks. Private credit lenders assess the financing request holistically by looking at the asset, sponsor experience, market, investor yield, etc. In addition, private credit lenders are often more willing to consider the unique circumstances of the property, the borrower’s personal/professional narrative and the overall potential value of the CRE venture.

Sanat Patel, Co-Founder and Chief Lending Officer of AVANA Capital, explains why private credit has become such a favorable financing option right now: “Private credit loans through AVANA Capital offer CRE investors a more dynamic approach with a tailored lending solution that encompasses the above-mentioned variables to meet the unique financing needs of a particular project.”

Within that more personalized approach, there is still an astute due diligence process guiding our approval process. In fact, AVANA Capital boasts a 0% delinquency rate – an achievement we take seriously and carefully safeguard.  

Every loan we service undergoes vigilant underwriting aimed at protecting the financial interests of the borrower, ourselves and those who invest private capital to help fund our CRE loans. Additionally, we service the loan with keen oversight to avoid defaults down the line. We like to think of our approach as a true partnership with the borrower, ultimately aiding in their success as a CRE investor. 

Term Flexibility

Traditional lenders’ lending decisions are policy-driven, where often the borrower is placed into a structure that may not align with their project’s timeline and potentially set the borrower, or project, up for failure. Private credit lenders, such as AVANA Capital, provide more flexibility in structuring loan terms as we get to know the ins and outs of our borrowers’ projects and then adapt our lending solutions to their needs. 

In short, AVANA Capital does not have a one-size-fits-all approval process. That’s because we approach each loan individually – and with an eye on the loan’s overall impact. Our company’s purpose is to deliver Capital for a Better Tomorrow, which means we understand the impact our loans have on the local community, economy and job creation. 

Niche Expertise

The AVANA Capital team has a deep understanding of the commercial real estate market, something not all lenders can offer. This specialized expertise allows us to help borrowers navigate the nuanced opportunities, challenges and complexities of the CRE market. All in all, private credit loans offer borrowers a more tailored solution for CRE projects.

Altogether, our team has a combined 150 years of experience in risk management and loan servicing, and we have successfully weathered numerous economic cycles. Thus, we offer borrowers valuable insights and guidance to help them succeed, even amid periods of economic uncertainty. 

Combine that with the stricter lending requirements banks are employing to reduce their exposure during this economic contraction, and private credit loans emerge as the standout solution for CRE investors. They may even be the conduit by which a purchase is even possible.

When you’re ready to discuss your project’s financing, contact AVANA Capital for more information on our private CRE loans. 


About AVANA Capital 

Established in 2002 and headquartered in Glendale, Arizona, AVANA Capital is a direct lender that serves business owners across the country through fast, flexible and reliable financing. For over two decades, we have empowered entrepreneurs in niche industries, aided job creation and supported clean energy initiatives through competitive financing. AVANA Capital is a proud member of the AVANA Family of Companies.

Contact us today to learn more about the financing that’s right for you.