Private Money Lenders for Personal Loans – If you can’t borrow money from a conventional lender, where should you turn to borrow money?
Some people end up saving money that they can get, in order to cover expenses that they would have covered with their loan.
However, some people don’t have such options—they, at this point, need the money right now.
People in this situation can possibly secure a loan from a private money lender.
A money lender is an individual or organisation that lends money to people who are unable to secure a loan.
The catch is that they typically lend out money at a higher interest rate, similar to what the borrower should expect at a conventional lender.
Why Consider Private Money Lenders For Personal Loans
- Why Consider Private Money Lenders For Personal Loans
- What are private money lenders?
- What terms do money lenders lend money?
- What is the application process like with private lenders?
- I have bad credit, how likely will I be accepted?
- What regulations do they have to abide by?
- What are the disadvantages of applying through private money lenders?
- What is a safer alternative to applying with a private lender?
Like conventional personal loans, private money lenders who offer loans to limited or bad credit borrowers take on risks.
If you don’t repay the loan, you’ll likely be subject to legal action from the lender.
Due to that possibility, you should always think about using private money lenders for personal loans, because if you can’t pay, they’ll make sure you do.
The main draw to private money lending is the that they may accept you even if you have bad credit.
Most private lenders for personal loans will consider all applications they receive, which should allow people with limited or no credit to borrow money.
Many reputable lenders will require prospective borrowers to provide the information they need to confirm whether they’re eligible for their personal loan.
Since a number of private money lenders do take on borrowers with limited or bad credit, most won’t have trouble securing their loan.
You can actually secure a private loan through an acquaintance or family member.
Most people, however, work with third parties who may likely lend them the money they need, as long as they follow their terms.
People often find their money lenders through a peer to peer lender service, advertisements and peer recommendations.
Many predatory lenders do advertise to susceptible borrowers as private money lenders, offering personal loans at supposedly favourable rates.
Signing with these lenders can quickly put a borrower in serious financial shape, if they’re not careful.
All the companies we use and advertise are all approved and registered.
Getting a personal loan through a private money lender isn’t a bad idea at all.
You do, however, need to understand the legal, tax-related and financial repercussions of working with a private lender to get a loan.
As long as you understand the risks, you’ll find using money lenders for personal loans isn’t so complicated after all.
By applying with one do you know what or who you are exactly signing up with?
What are private money lenders?
Private lenders are different to the standard high street and mainstream lender on the market.
With private lenders you are not applying with a bank, financial institution or credit union.
Private lenders are companies or individuals that loan their own money to others.
They lend money in hope that they will get a high return on their capital.
What terms do money lenders lend money?
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 than a standard loan.
What is the application process like with private lenders?
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.
With a private lender the process can often take a couple of days to approve and release the funds.
I have bad credit, how likely will I be accepted?
Private lenders may be more likely to take the risk of lending to someone with a less than perfect score than a bank would.
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.
What regulations do they have to abide by?
When you apply with a traditional bank or with another formal lender they have very strict lending practices as they are heavily regulated.
This means if you have a less than perfect credit score you are highly likely to be declined.
However, with some private lenders they have no such obligations and so are able to lend regardless of your credit score, but only if they wish to.
The lenders we use and advertise on this website are all approved and regulated.
What are the disadvantages of applying through private money lenders?
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.
You will be protected using the lenders on this website
What is a safer alternative to applying with a private lender?
With our regulated and registered lenders, they can provide safe lending to applicants that may have been turned down by the mainstream lenders.
You will be protected by the current laws and regulations that our lenders must adhere to.
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.
See also private loan lenders UK.