When the idea of applying for finance comes up, many Australians think of going to one of the big banks to apply for a loan. Banks have been the staple of lending to everyday Australians for many decades, but traditional banks are not the only type of loan firm around when it comes to loan services.
A private finance lender is another very good option that is sometimes overlooked by borrowers, usually due to the fact that they are simply not aware of private lender finance.
In this post, we’ll take a closer look at what private lender finance is and why you’ll want to seriously consider this type of loan provider next time you want to borrow money.
What Is Private Lender Finance?
Private lenders are either individuals or businesses that have access to a private pool of funds. It’s a loan that is not issued by a bank or any institution that’s considered a traditional lender.
Often private lenders will specialize in short-term finance, as well as offering loans of smaller denominations.
Let’s look at some key advantages of dealing with private lenders.
The Advantages Of Private Lender Finance
Speed is a word that’s often associated with the private lending sector. Banks can take a while when it comes to processing loan applications and making a decision, whereas private lenders make it a point to be more expedient so they can attract your business.
Loan applications are processed very quickly and may even be processed and approved on the very same day that you apply. This is a very attractive feature for anyone who needs money quickly, such as in the case of an emergency.
When applying for a private lender Personal Loan, you can complete the entire application process online, from anywhere at any time. Not only is this convenient, but it’s also yet another way that helps speed up the overall application and approval process. When you need money for a specific purpose, you don’t want an involved and drawn out application process. Private lenders avoid lost time and frustration.
You could find yourself in a situation where you only require a small loan to cover your needs. An example could be that your car needs to be repaired, it’ll cost you $700 but you don’t have the cash on hand. If all you need is $700, you won’t want to apply for a Personal Loan with a bank, where the minimum loan amount is usually around the $5,000 mark. It’s overkill for a situation such as this example.
Private lender Personal Loans generally start as low as $500, so when you only need to borrow a small amount, a private finance lender is definitely a top option.
With smaller loans you won’t want to commit yourself to long-term repayment plans, accumulating unnecessary interest along the way. Private lenders offer shorter terms, such as 3 months to 12 months to repay a standard Personal Loan. If you only need to borrow a grand, you’ll want to pay the loan back as quickly as possible, and you have that option when you deal with a private lender.
Some loan applications with the traditional sector require loads of supporting documents and paperwork. Private lenders streamline this process, requiring only the minimum documentation to assess and approve a loan application.
You’ll also be pleasantly surprised when it comes to interest rates that private lenders offer on their loans. They’re very competitive and fair and loan terms and fees are also usually very transparent. It’s always wise to thoroughly check a lender’s website first though, and give them a call or shoot them an email if you’re uncertain about anything regarding loans, fees, interest rates, and repayment terms.
Australians are spoilt for options when it comes to financing. Traditional banks and building societies will always have their place, but the private lending sector has really seen strong growth in recent years as more and more people become aware of the advantages these lenders offer.
If you’re looking for a Personal Loan, take some time to research private lenders first before committing to a financial product.