Monday, February 3, 2014

What Makes Private Hard Money Lenders Preferable To 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.

Working with creditors is usually the easiest and most preferable option when it comes to borrowing cash. This is because there are numerous advantages coming from seeking their services. One major advantage is the reduced paper work required for the acquisition of loans. Most creditors only require you to sign an agreement and you can get the money you need.

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.

Creditors that offer loans with property and other assets as collateral usually do not pay any attention to the financial status of the borrower. This is good because it means that even if you are not credit worthy to banks you can still get a loan from these creditors. These creditors do not require any clarification with the loans board to offer loans. As far as the individual has collateral then they can get a loan.

Another advantage of these creditors is their reliability. Since these creditors work almost all the times, it makes it possible for an individual to get loans at any time of the day or night. This makes them the best bet when you urgently need cash after business hours. Most banks are also closed on weekends and public holidays hence making loans unavailable at those times.

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.

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.

Even with all these advantages, it is good to be careful when dealing with private hard money lenders. This is because they are not patient and will sell your property immediately you default payment. Unlike banks, these creditors do not offer time extensions.




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