Private money loans are loans collateralized by real estate and non real estate assets. In ‘private money’, higher interest rates and lower LTVs (loan-to-value ratios) are common. They are collateral based loans.
A private loan is a short-term loan that is used until a company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to 24 months) with relatively high interest rates and are backed by some form of collateral such as real estate and / or non-real estate assets.