We’re all familiar with banks and credit unions and the like, and most of us know what they offer regarding finance. The more traditional financial institutions are not the only option available if you need to borrow money, and they’re not always the best choice depending on your situation and requirements.
A private finance lender is another popular option and there are quite a few available. Cashify Loans Australia is one such example of a private loan firm that offers quick cash loans and is a great alternative to the banks. It’s just one of many private lenders around the country and is Australian owned.
Let’s take a closer look at private lenders, what they offer and why they might be the best choice for you.\
What Is a Private Lender?
Essentially a private lender is not a part of the traditional banking sector and has access to a private pool of funds to use for Personal Loans, Mortgage Loans and Pawn Loans. Many private lenders focus on providing short-term lending options and smaller loan amounts, something that usually isn’t available in traditional banking sectors.
So, what are some key advantages of teaming up with a private lender?
1. Fast Cash Loans
It’s not often you would hear the words “fast cash” associated with one of the banks when it comes to getting finance, whether it be a Personal Loan, Home Loan, Business Loan or Credit Card. While banks lend out multiple millions of dollars every year, they don’t do it with speed in mind. Often the process can take weeks before you get a decision.
Not everyone can wait weeks. A prime example is an emergency, where you might need the money within a day or two at the most. In this situation, a private lender may really come to the rescue, as they specialise in fast cash loans. It’s one of their competitive edges against the banks and one of the reasons private lenders are so popular among Australians.
2. Smaller Loan Amounts Are Available
While the amounts will vary depending on what each lender offers, generally speaking, you can borrow anywhere from a few hundred dollars through a private lender up to $15,000 for Personal Loans.
Most banks will have a minimum borrowing amount much greater than that. Sometimes you might only need a small amount of money to get you through and won’t want to be paying back 4 or 5 figures when $750 is all you need.
3. Poor Credit Or No Job? Pawn Loans Are An Option
Not all private lenders offer the Pawn Loan option, but it’s definitely something to look for if you don’t have the best credit score or you’re currently unemployed.
With a Pawn Loan, you put up an item of value as security against the amount you borrow. With private lenders, you’ll want to have a car, motorbike, boat or some other item of significant value as collateral. Let’s say you use your car. You’ll bring it in to the lender and they’ll evaluate it. Usually, you can borrow up to 60% of the asset’s market value. Leave the car as security and it will be returned to you once you’ve paid the loan back, including any interest and fees.
Pawn Loans are a very fast way to get your hands on some cash. There is less scrutiny because there is less risk being taken on behalf of the lender. No credit or employment checks are required.
Definitely an option to keep in mind.
4. Minimal Paperwork and Fast Approvals
Because private lenders use speed as a selling point when it comes to their lending options, not a lot of paperwork is required. Mounds of paperwork, data and documents are only going to slow down the entire application and approval process.
Instead, Personal Loans can be applied for online with minimal supporting documentation, which often leads to same-day approvals.
5. Short-Term Loans
For a smaller fast cash loan, you won’t want to be spending years paying it back and accumulating loads of interest in the process. Depending on the lender, the type of loan you get and the amount you borrow, terms could be anywhere from a few months to just two years before you repay your loan in full.
Depending on your financial position, a private lender may be the best solution for you. Why not start by researching a few Australian private lenders, like Cashify, who offer a range of loans for all different situations.