Private Money Lenders
Private loans: A quick fix to your financial problems
The great recession has knocked down many people financially. Although the situation is quite better now, yet many people are still suffering from this economic hazard. Recession has prevented millions of people from obtaining financial help from traditional lending sources like banks and other standard financial institutions due to their poor credit score. With such tighter and stricter condition of the economy and financial market, one reliable source which can be of great help is private money lenders.
The use of private money lending sources is booming by each passing day. People neck-deep in debt or other monetary problems are making the best use of these sources. A clearer picture of private money lenders and how to work with them is provided for you.
Definition of private money lenders
Private money lenders are also called hard-money lenders. They can be an individual, investor or private companies offering personal loans to people in financial urgency. Unlike banks and other financial institutions, private money lending sources provide you loan with less documentations and regulations. Thus, they are hassle-free.
In contrast to traditional loan lenders, private money lenders have their own set of rules and guidelines. Their main aim is to invest their money by lending it to people so that they can carry out with their investment and make profits by levying interests.
Ways to find out a private money lending source
Finding a legitimate private money lending source is a big problem. There are plenty of illegitimate money lenders who with unethical practices and tactics can make you pay unwanted fees and other extra charges. Therefore, approach private money lenders with caution. The points mentioned below would help you in this task.
Collect personal financial data: A private money lender is likely to see documents proving your income and financial stability. So, collect all these documents relevant to your search for a private money lending source. Documents like bank statements, details of your 401k, stock market brokerage account etc. can be helpful in this regard.
Search local phone book/Yellow Pages/online: A private money lender may be listed on your local phone book or even on investment or bank sections of your city’s Yellow Pages. Search engines like Google, AAfter, Bing and Yahoo may also be helpful.
Seek help from corporate entity: Banks and credit unions can assist you in finding authentic private money lending sources, even if circumstances prevent you from obtaining loan from them. Local small business chamber of commerce can also be contacted for help, as many private lenders work with them. This will be really helpful as there are less chances of being fooled.
Attend business networking events: Going for events and mixers related to business as it would help you in expanding your relations. You can present your investment and financial documents at such platforms which are likely to advertise you to potential money lenders.
Contact Small Business Administration (SBA): SBA maintains a wide array of resources for small businesses and thus they can easily hook you up with private money lenders. SBA deals in specific sectors like technology and health, but still you may be offered with links which may prove helpful in finding private loan lenders.
Follow the above mentioned steps, so that you can get access to genuine private money lenders who can help you in meeting all your financial obligations without any hassle.
Eligibility for a private loan from a lender
The private loan lending industry is skyrocketing. Plenty of people apply for these types of loan. Therefore, if you want to prove yourself as a strong applicant, then you need to take some major steps mentioned below:
Financial stability: Any document supporting your job security is important. Therefore, collect pay stubs, monthly earnings invoices, a letter from your company supporting your job security etc. All these documents will automatically make you a strong contender for private loans.
Credit score: A good credit score opens plethora of opportunities for getting a private loan. If you have a good credit score, you can use it as a bargaining tool with private money lenders for getting a better interest rate and better loan terms.
Online private lender: You may also opt for online private money lenders. Even if you’re rejected by some of the lenders, you can try out your luck here. However, the interest rate is going to be higher and repayment plans less favorable with such lenders than conventional lenders.
The application process: Private lending sources have their own set of rules and regulations. These policies may differ from one lender to another. Loan approval terms, interest rates, maximum loan amounts also differ by lenders. There are plenty of options available, so make sure you check the fees, penalties, repayment terms and annual percentage rate of the loan.
Go through the above mentioned points, so that you can make a good presentation in front of potential private money lenders.
As traditional lending is largely defined by borrower’s credit score and ability to repay, thousands of people are getting rejected daily. This rejection breaks them as only fast cash is the thing that can solve their financial problems. At such crucial time, private money lenders provide a ray of hope.
Private money lenders are mostly based on the evaluation of borrower’s underlying assets. These sources can be relied upon at hard times to fix the financial problems. Over last few years, private loans to individuals and small businesses have increased by almost 500%. Many people have solved their financial problems and come out bright through this lending process. There are instances where people have opted for loans from private money lenders for small businesses and flourished with prolific outcome.
Therefore, fix up your monetary problems by getting hooked to private money lenders who will offer prompt cash and that too without much trouble.
While you’re in dire need of money, you may contact private money lenders to take out a loan. We can introduce you with the most legitimate lenders of the industry.