Are you considering using a private money lender or a bank to help you fund your next financial project? You may be surprised to find out that using private money lenders can be better for you in various scenarios than you would find with other financial institutions. Not only do banks take longer for the approval process, but the fees can be higher and hurt your economic situation. Instead, consider using private money lenders to help with your loan – especially if you need money ASAP. Let’s see a few reasons why private money lenders might be better for you over banks.
Private money lenders vs banks
Quick approval process
One of the main benefits of using private money lenders like Asset Based Lending or banks is that the approval process is much quicker than you would find with financial institutions. Even though banks are typically safer and carry fewer risks than private money lenders or hard money loan lenders, using a private money lender has a quicker approval process – this means that if you need money as soon as possible for a project, you can get it with a much less rigorous screening process.
Don’t worry about your credit
If you have defaulted on a credit line or you can’t seem to pay off your credit card each month, this can wreak havoc on your standing when it comes to banks and professional institutions. However, if you need a loan, how can you get one if your credit score is Poor or Average? Use private money lenders! Instead of having to go and try to fix your credit score that has taken a hit after years of unpaid bills, use private money lenders to get money fast.
Complete necessary projects
One of the main benefits of using private money lenders is that you can get funds as soon as you need them to complete projects that have fallen by the wayside. If you promised a project that would be done within a few months and you are struggling to get it done on time – and you need a lot more materials, manpower, and resources – you need to secure money fast. But who can do this if you’re not approved by banks? Use private money lenders!
Don’t worry about your past history
The last reason to use private money lenders is to avoid any concerns about your past mistakes. Even though you may have made a final decision in the past that has caused you to fall into debt or the red zone, don’t worry about it – private money lenders do not worry or look at your past financial history. Unlike banks – who check every financial decision you have made since you opened debit cards or credit liens – private lenders do not look at your past mistakes, loan modifications, or bankruptcies.
If you’re debating where you should use private lenders or banks, the former might be the better option for you depending on your current financial situation. Have you defaulted on loans or avoided paying your credit card bills? If so, use private money lenders to finance your next project!