Saturday, 1 February 2014

Advantages Of Working With Private Hard Money Lenders

By Serena Price


Most of the people in the different classes of life are finding it hard to make their ends meet. This has made most of them to turn to financial institutions for help. Most of the times, these financial institution have many rules that may disqualify you from getting a loan. This is has made most people turn to private hard money lenders for any financial help that they may require. This is because getting loans from these creditors is far much easier than getting cash from banks.

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.

Creditors are also far much more efficient than banks and other financial institutions. This is because the protocols of providing the loans vary. In banks and most financial institutions the whole process of loan acquisition takes several days or even weeks in some cases. Creditors offer the loans almost immediately after you sign the agreement. This is what makes them preferable in times of emergencies.

Unlike banks, these creditors pay very little or no attention to your financial status before offering loans. Usually banks require very many documents to support your financial status. Banks will also consider the opinion of the loans board to check if you have any unpaid loans. With these creditors all you need to get a loan is collateral for the loan. With this you do not even have to have a witness.

These creditors are also very reliable. This is because they have long working hours. This makes loans available to anybody who would need them even after business hours. Banks and most financial institutions have fixed working timetables. This means that you cannot get any cash after the official business hours. Banks also rarely open on weekends and public holidays. This makes accessing cash on such days impossible.

With these creditors, it is also possible to negotiate the interest rates that your loan will attract. This is not possible with banks as the interest rates are fixed. Depending on the amount of time you need to service the loan, you can negotiate with the creditor for lower interest rates.

With creditors, it is also possible to get several loans at once. Even with pending loan payments the same creditor can give you a loan as far as you can provide collateral. This is not the case with banks where you can only have one loan at a time. This means that you can take as many loans as you want.

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.




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