Why Private Hard Money Lenders Have An Upper Hand Over Banks

By Serena Price


The costs of living are becoming more and more expensive with every passing day. This has made it hard for people to maintain their lifestyles. This has made many people to downgrade or sell their assets to support themselves. For people who are not inclined to sell their property, there is always the option of borrowing money from banks, financial institutions or even from private hard money lenders. This has made the popularity of these creditors to increase significantly. How easy it is to get loans from these financial institutions varies from one institution to the other.

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 point that has increased the popularity of these creditors is their high level of efficiency. From the time an applicant applies for a loan to the time he is credited with the money it can take several days if not weeks in banks. This is usually not the case when dealing with these creditors. With the creditors, it only takes several minutes, one hour tops, for you to get your cash. This makes them the best bet whenever you need cash urgently.

These creditors do not require your banks statements or previous pay slips in order to loan you some cash. In some cases they do not even check your financial history to determine whether you are fit to get a loan. As far as the security you offer for the loan can service it, then you are eligible to get a loan from them. They also rarely check with the IRS for your tax compliance certificates and history.

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.

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 borrowing cash from creditors is that they have no limit of how many loans you can get from them. Even without having paid your previous loans, you can still get another loan from these creditors as long as you have collateral. This means that you can even get a loan to service your previous loans if need be.

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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