Private money lenders have existed for a long time alongside traditional money lending institutes such as banks and credit unions. But they’re becoming more and more popular throughout New Zealand for various reasons, one being that conventional money lenders aren’t making it easy to secure a loan, even a small, short-term loan. Here are some of the many benefits associated with private money lenders.
Banks Offering Fewer Small Loans
Although you may have seen several banks advertising on TV and social media about their willingness to provide clients with small business, wedding, vehicle and personal loans in NZ, the fact is that when you approach these institutes they make it extremely difficult to secure any type of loan, especially a small one. Even applying for a small amount of money can take a considerable amount of time and effort on your behalf, it can be a long, drawn-out process which eventually ends with you securing zero funds.
Because of previous global financial problems, traditional banking institutes are reluctant to offer loans to all kinds of clients. If you’ve no fixed assets or bad credit history, you’ll have a very slim of securing funds.
Quicker Turnaround Speed
One factor that makes alternative money lenders so attractive is their turnaround speed, they can have your loan application processed within a day, and funds in your account within hours of approval. You don’t need to set a meeting with a bank official and plead your case during a time-consuming meeting, all you have to do is key in your details online and wait for a response. Whereas waiting for an answer from a bank could take weeks, an online private money lender can have your application processed within hours. You’ll know exactly where you stand that day rather than having to wait an extended period to find out whether you’ll receive your funds.
If you are requesting emergency funds for business purposes, you don’t have time to be sitting around waiting to see whether a bank or credit union will approve your request. If you’ve to make important business payments, you’ll need the money that day, or the next day at the latest. Online private lenders who specialise in small loans are more superior when it comes to operating times in comparison to traditional banks.
Higher Approval Rates
Private money lenders are more understanding when it comes to assessing applications, even if you have a bad credit rating or you’ve no assets, they will still consider your request. Some lenders offer unsecured loans, these are available to individuals with bad credit or zero security. There are many ways to get an unsecured loan, it just takes a little more time for the lending organisation to assess other factors before approving.
There are numerous benefits associated with using private money lenders as opposed to conventional methods. They specialise in offering small loans which make them ideally placed to provide an efficient, effective service. You can have your loan approved and money in your bank account within 24 hours, traditional banks can’t offer this type of service.