Contrary to popular belief, banks and non-banks aren’t mutually exclusive of each other, meaning that non-bank borrowers don’t use non-bank money simply because they “can’t access bank money”. Sure, that’s the case at times, but most of the time borrowers choose non-bank money over bank money because it can offer many advantages over bank money.
Always remember, the true cost of capital is not just about “the rate”. It’s a combination of multiple factors, of which the interest rate is just one.
Sometimes non-bank money is best suited to a given lend, and other times bank money is better suited. Idutch isn’t aiming to convince bank clients to come over to private, idutch is working with property owners and developers who understand that sometimes non-bank money is smarter than bank money.
Learn more about the true difference between banks and non-banks here.