When a borrower does not have time to wait for a conventional lender to approve a loan or when the borrower does not meet conventional lending standards (bad credit, no verifiable income, etc.) private loan can be used to acquire property or other real assets. The typical loan to value ratio is up to 80% with the lender taking an equity interest. Lenders generally expect repayment in one to three years. Disbursements are often made periodically to the borrower according to a construction holdback agreement signed at the loan closing.