Friday, January 31, 2014

Why Private Hard Money Lenders Have An Upper Hand Over Banks

By Serena Price


The economic hardships and recessions of these modern days has seen many people get loans from private hard money lenders to complement their earnings or help them get through to the next payday. The services offered by these creditors are very important because they avail money to the general public. Even with the availability of loans from banks and other financial institutions, these creditors are far much better.

There are numerous advantages that come from borrowing cash from creditors as compared to banks and other financial institutions. The biggest advantage that creditors have over banks is that they have minimal paper work. Banks require a lot of details before they can authorize an individual to get a loan. This is not the case with most other creditors.

Another very important advantage that makes these creditors more preferable to banks is their efficiency. Usually, getting a loan from a bank can take several days for the transaction to be completed. This is not a very good choice especially when the borrower does not have several working days to wait for the money to clear. With these creditors the whole transaction can be completed in several minutes. This makes them a good choice when you need cash urgently.

Creditors that offer loans with property and other assets as collateral usually do not pay any attention to the financial status of the borrower. This is good because it means that even if you are not credit worthy to banks you can still get a loan from these creditors. These creditors do not require any clarification with the loans board to offer loans. As far as the individual has collateral then they can get a loan.

These creditors are also preferable because they have good working timetables. Unlike banks, these creditors open late and close late. This means that you can acquire yourself a loan regardless of the time for day or night it is. With banks it is only possible to acquire loans during the normal business hours. Some banks also do not open on weekends and public holidays making it hard to access loans.

The rates of most creditors are not fixed. This is because of the competition in this industry. Creditors give you a chance to negotiate the interest rates your loans will attract depending on the amount of time you will need to repay the money. These rates are at times lower than those of banks and other financial institutions.

Another advantage of working with these creditors is that they do not check into you loan repayment history. Even if you had a loan and defaulted they can still loan you cash if you have security. With these creditors you can get as many loans as you like as far as you have a form of security for the loans.

However, all that glitters is not gold. There are also several disadvantages that come with borrowing money from private hard money lenders. The biggest disadvantage is that they are very quick to repossess your collateral once you default on payment. Unlike banks, these creditors do not offer extensions on the loan repayment time.




About the Author:



No comments:

Post a Comment