We’re lucky to live in a country that has so many options available when seeking a loan for personal or business use.
When you think of getting a loan, the first option that often comes to mind is the traditional banking sector, meaning banks, building societies and credit unions. The good news is that there’s now more choice through an increasing number of specialist lenders that offer finance to those who either don’t meet the banks’ strict funding requirements or who seek an alternative solution.
In particular, there are now numerous private finance lenders in Australia that offer a broad range of products that are worth being aware of. Let’s take a look at some advantages to choosing a private lender next time you need finance.
1 – Short-term finance options are available
The change in the lending landscape coincides with the evolution of products available that meet various loan requirements. This has been largely driven by the increase in the volume and requirements of small businesses, as well as changing expectations of individual borrowers who seek more flexible funding criteria.
Consequently, there’s been a rise in demand for shorter-term loans for personal or business use. Short-term loans are popular due to their flexibility and speed.
Short-term lenders are often ‘private lenders,’ which means they have far greater control over the loan amount and terms able to be offered. As such, private lenders are renowned for helping a wider spectrum of borrowers with more versatile and customised loans. Also, because short-term loans typically only require minimal paperwork and often done online, they’re usually quick to process – which means that funding is often available within as little as a few days.
2 – Speed is the name of the game
Traditional finance providers, such as banks, usually take a while to process applications and approve a loan. Conversely, private lenders are known for their speedy loan applications and approvals. This quick access to funds can be extremely beneficial if you need money urgently to cover a sizeable, and often unexpected, bill.
3 – Minimal documentation required
Private lenders generally keep supporting documentation to a minimum. This makes the application process quicker and more simplified, and also helps to speed up the decision-making process.
4 – You can do your application online
Rather than having to go into a branch and fill out extensive forms in paper format, with most private lenders, you can do the entire application online from the comfort of your own home and in your own time.
You’ll find the application process is streamlined, without extraneous questions. The advantage of an online application is, once again, speed. The application will be filled out fairly quickly, submitted for processing, thus speeding up the approval process.
Anything that makes applying for finance easier and faster is always a positive thing!
5 – Private lenders are generally easier to deal with
In general, many people find dealing with the private lending sector a lot easier than more traditional lending sources. This is primarily due to being more flexible with the loans offered, requiring less paperwork to assess the application and being much quicker in the approval process.
There are numerous ways to obtain finance for personal or business use. It’s a good idea to know what options are available to you and consider all options, including a private lender, when you next require finance (especially if you need funding in a hurry).