When the average Australian thinks of applying for a loan, they usually consider applying with one of the big banks first. It’s only natural. The banking sector has been providing finance to Aussies for many decades, but banks are not the only game in town.
Private money lending companies are another option and it’s worthwhile noting that the private lender sector is a growth area in the world of finance; especially in Australia.
Banks are a mainstay of the financial industry in this country and of course, they’ll always have their place, but there are distinct advantages to giving a private lender a try the next time you’re looking for a Personal Loan. In this article, we’ll take a look at some of those key advantages and why you should look to borrow from a private lender.
Fast Loan Processing and Approval Processes
If you’re chasing quick money loans, then a private lender is certainly your best option. When it comes to fast cash, Australia has a number of options in the private lending sector.
Why do private lenders like to offer fast approval processes? It gives them a leg up against the competition. Money lending is a very competitive business in Australia and when a smaller lender goes up against the big banks, they need to be able to offer a competitive advantage.
People are impatient in modern society and expect everything almost instantly. It’s becoming the same with loan applications. Nobody wants to wait for weeks to find out whether their Personal Loan application has been approved or declined. Therefore, if someone needs the money fast, they have a much better chance of getting cash quickly (possibly even on the same day) from a private lender.
Private Lenders Are Short Term Loan Providers
When it comes to the banks and Personal Loans, generally speaking, they don’t offer short terms. About the shortest, you’ll usually get is 12 months to repay a loan. With a private lender, many offer terms as short as only 3 months, if you are only borrowing a smaller amount and want to get the debt repaid quickly.
Two advantages of this are that you won’t remain in debt for the loan for very long. The second is that the quicker you can repay a debt, the less interest it accrues over the lifespan of the loan. These 2 benefits of short-term lending save you money as well as give you peace of mind.
You Won’t Need a Mountain of Supporting Documentation
While the amount and type of documents you’ll need to provide to support your Personal Loan application may vary from lender to lender, as a general rule, private lenders ask for fewer documents and paperwork than the banks. It’s all a part of streamlining the application process and speeding things up.
After all, who really wants to deal with loads of paperwork? You, as the applicant, won’t want to and neither does the lender. All you’ll be required to provide is enough supporting documentation so your loan application can be successfully processed and approved.
Private Lenders Will Loan You Smaller Amounts
Not everyone who wants a Personal Loan needs to borrow thousands or even tens of thousands of dollars. Sometimes, you might only need a $500 boost to get you through. You can’t apply for a $500 Personal Loan with a bank. Yes, you could apply for a credit card with a small credit limit, but that’ll take time and generally they attract higher interest rates.
Private lenders also specialise in providing small Personal Loans, as they understand that not everybody needs to borrow larger amounts. It’s about giving you options that the banks don’t provide. Typically, you can borrow anywhere from about $500 and up to $50,000 with most private lenders.
Competitive Interest Rates
You’ll also be happy to know that many private lenders offer very competitive interest rates to gain an advantage in the finance market. Check with each lender’s website to verify what interest rates they are currently offering.
Banks are not the only option available when you want to borrow money. Private lenders are definitely worth a shot and provide some distinct advantages over the traditional banking sector.