On this page we are going to explain what private and private lenders are, how they work, under what conditions they lend, what are their requirements as well as their pros and cons. Everything you need about the lenders we will explain below.
The first thing to know is that the figure of the private lender is completely legal. The main difference with a bank that lends is that it is not a bank but an individual or company who signs the loan. Many are investors who are professionally dedicated to lending. Similarly, there are savers, funds, and others looking to get a return on their money.
Loans from private lenders are diverse and you can find everything. From mini credits, personal consumer, mortgages, on vehicles and many others. Regarding the characteristics and particularity of this financing, point out the following:
Fast since on the same day you can have an answer and in some cases even the money in the account.
Flexible as they admit a wide range of payment methods and repayment terms
High approval rate
West African Loan Group accepts most applications.
Higher interest rates than bank ones
That is why many times those who go to private lenders do so because they need to solve a problem that the bank is not viable or simply needs urgent liquidity.
Requirements to request a loan from a private lender
Depending on the type of company you go to, the requirements and conditions of access can vary significantly. Because a lender can be from a company that grants mini loans to one that offers mortgages or pawn.
Therefore, depending on the type of financial product you wish to request, the requirements to be met will be different. Even so, as a general rule the following is usually requested:
- Be of legal age and also residency in Spain
- Have a bank account
- Have some means of contact, email or mobile phone for example
- Accredit a stable source of income
Regarding income, private lenders do not require payroll, in the same way any demonstrable and real income is accepted. In this way, if you are a pensioner, unemployed with unemployment benefit or self-employed, you can still access.
If I am in West African Loan Group, can I apply for credit from the lenders?
Here the same thing happens as explained above, this depends on the credit institution you go to. The usual thing, however, is that you can access without problems because it is easy to find lenders regardless of West African Loan Group.
How Private Lenders Work
The process to request a loan from a particular lender is actually simple, let's see it:
1 - First you enter the company's website and choose the amount of money you need, and the repayment term.
2 - Then you fill in a form with the data that they ask for the risk study and solvency analysis.
3 - Later they respond with the result is approved or rejected. This response can take from 5 minutes to 48 hours depending on the type of credit you want to request.
4 - Finally and in case of success you receive the transfer of money to your bank account number in the shortest possible time.
This procedure may change depending on the entity where you request the money and also the type of product you request. Signing a mini loan has nothing to do with a mortgage, for example.
Advantages and Disadvantages of Private Lenders
One of the main advantages of loans between individuals as they are also known is that the one who signs the loan is not a bank, on the contrary, it is a person or individual who is willing to lend money to another person in exchange for the collection of interest and be way to get a profit.
If everything goes well, both parties win, first the applicant who gets money quickly through the application to some private lenders, then the one who wants to invest money in a credit operation.
In addition, it is likely that those who request the money do so because they are looking for speed, greater flexibility or because their bank has denied them financing, something that does not happen with lenders, where the success rate is much higher.
Consequently, the client gets immediate liquidity while the lenders get a return on their money which rents at a higher interest than that of bank deposits.
Services offered by private lenders
One of the characteristics of loans from private lenders is that you can find a wide range of financial solutions aimed at both individuals and businesses. Next we are going to show what type of services you can hire:
1 - Private lenders through private equity entities specialized in granting small short-term loans. They are the best known in the market by providing a popular short-term and easily accessible loan to individuals. These online lenders are characterized by offering amounts of up to € 1000 in 30 days, minimal but expensive requirements.
2 - Individual and private loans through online platforms: They seek to be a serious and effective alternative to the traditional banking system. They do not process loans with an endorsement but rather focus on offering personal loans, where those who request the money do not have to provide any guarantee of payment except demonstrable income. The amounts are usually high, between € 5,000 to € 15,000, offering a payment term for repayment of the debt.
What the intermediary or platform does is to put private lenders in contact with those users who are looking for a loan without the need for an endorsement. They are characterized by having a lower success rate, they are slower but the conditions are similar to those of financial establishments and even banks. The intermediary charges a commission for each operation that is approved but does not advise the client during the process as it is a 100% online procedure.
3 - Private lenders with a property or vehicle guarantee: Those who are associated with the definition of “Lenders”, people who lend to others but based on a guarantee that acts as a guarantee against the debt. Most work through companies dedicated to financial intermediation, being the ones in charge of managing the client's request.
The amounts are higher than the previous ones and are usually used in complicated cases where there is no solution through the previous routes. For example, when the user is registered in delinquency files, he does not have a payroll, he has a lot of debt, etc.
Where to find reliable and serious private lenders
Although it may seem logical, it is easy to find an unserious lender, especially on the internet. For this reason, below we explain where to find reliable lenders:
Financial websites and comparators: Today there are many websites that work as a credit comparator (for example Igreigre is one of them). Only legal, reliable, regulated companies formed by professional experts in the financial sector are shown on this page.
Financial advisers: These often collaborate with efficient and regulated financial lending firms. If you do not want or can carry out this search or filter, one option may be to go to a financial advisory (for example, Negotiating Agency expert in debt reunification)
Tips and tricks when asking for money from a private lender
Just search in your country, there are no lenders that work internationally, when this happens practically 100% of the cases are scams. For example, if you are from Spain and they offer you a French, be careful, the same in reverse.
Do not pay money in advance under any circumstances. Being as it is most of the time a deception, the safest thing for you is to never pay anything.
Before signing, you have to have a binding offer specifying the details and conditions of the loan you are going to sign.
You have a right of withdrawal of up to 14 days after signing the transaction. Therefore, if after signing you regret it, you can cancel the contract without any penalty in the next 14 days.
Why request financing from private lenders
In summary, below we are going to give you some of the frequent reasons why to go to this alternative market:
1 - Quick money is sought, without waiting or explanations
2 - You want to adapt the return according to the customer's ability to pay, something that is possible in this way.
3 - The applicant is denied the bank loan for being in a file of defaulters
4 - The client does not meet the requirements requested by the bank to approve the credit.
5 - Short seniority at work
6 - Age of the holders
7 - It does not have a payroll but does have income (many banks do not admit people with a pension, unemployed or self-employed but require payroll)
8 - The client has a high Cirbe (indebtedness that exceeds the bank limit)
These are some of the usual ones but there are truly many more. It is not always because the bank denies access to money, sometimes confidentiality, speed, minimal paperwork and avoiding the huge paperwork and bureaucracy of the banking system are sought, which is why private and private lenders have a loyal audience that resorts to them when they need quick cash.