Private lenders are slightly different to the standard high street and mainstream lender on the market.
They are also not a loan shark. They lend money in the hope that they will get a high return on their capital.
Private lenders may be more likely to take the risk of lending to someone with a less than perfect score than that of a bank. However, it does still pose a risk that they may not successfully receive a return on their original investment and so it isn’t a 100% guaranteed that you will be accepted.
Private Lenders Loans
With private lenders you are not applying with a bank, financial institution or credit union. These are companies or individuals that loan their own money to others.
The money borrowed can either be borrowed on a secured or unsecured basis. Since the loan is usually secured by a deed of trust rather than official collateral the interest rates are typically higher.
Different Private Lender Options
When you apply with a traditional bank or with another formal lender they have very strict lending practices as they are heavily regulated and have a higher obligation to lending funds.
This means if you have a less than perfect credit score you are highly likely to be declined. However, with a private lender they have no such obligations and so are able to lend regardless of your credit score, but only if they wish to.
When applying with banks there is usually an extensive application process, requesting a lot of information and evidence before they will accept you for a loan.
On the other hand, with a private lender the process can often only take a couple of days to approve and to release the funds. Which can be an advantage if you are in need of the money fast.
Overall private lenders are a lot easier to be approved by for a loan. However, the downside to using some private lenders is that because they are not required to adhere to any legislation you can be at the hands of the lender when paying back the loan borrowed.
Before applying with a private lender make sure you weigh up your options. With our regulated and registered lenders on this website, they can provide safe lending to applicants that may have even been turned down by mainstream lenders.
You will be protected by the current laws and regulations that our lenders must adhere by. By applying through them you can be sure you know exactly what terms you are entering in to. Just click on the links on this page to find private lenders near you.