Why You Should Choose a Private Lender When Looking for Finance

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Australia offers many options when it comes to things like Personal Loans and other forms of financing. Depending on your specific needs, some lenders may be more suited than others. In this article we’re going to be taking a look at private finance lenders and what the specific advantages are of choosing a private lender next time you need a loan. 

Many Private Lenders Offer Fast Turnaround Times

On certain occasions, such as being faced with some form of emergency, you may need to find a lender who offers rapid turnaround times from application, to loan approval and depositing the funds into your nominated account.

When it comes to fast loans, Australia has a number of private lenders that offer a speedy service; generally much quicker processing times than what the banks offer. This allows them to remain competitive despite being smaller businesses than some other financing options. 

You may not always be in a hurry to have a loan approved but if time is of the essence, then a private lender may be the best way to go.

More Flexible Loan Repayment Terms

All lenders can vary when it comes to their loan repayment terms, whether they be a bank, building society or a private lender. With regards to a Personal Loan, banks generally start their repayment terms with a minimum of 12 months. How long you have to repay the loan can sometimes depend on how much money you borrow.

If you’re only planning on borrowing a fairly small amount and you want to get your debt repaid sooner rather than later, you might want a shorter term than 12 months. Many private lenders will offer terms as short as 3 months if you want to save on interest payments and repay your loan faster. 

 Tailored Loan Options To Suit Your Specific Needs

A private lender will often give you a choice of tailored loan options for a variety of purposes. Some of those purposes may include the following:

  • Medical Loans
  • Car Loans
  • Wedding Loans
  • Debt Consolidation Loans
  • Home Renovation Loans
  • Holiday Loans
  • And more…

It’s good to have flexibility and options when it comes to your borrowing power and the purpose of the loan. The best way to determine how a private lender can help tailor a loan to your specific needs is to get in touch with your preferred lender and discuss your situation with them.

Always make sure that the lender approves your reasons for seeking finance before making an application. This criteria can vary from lender to lender.

 You Can Apply for a Loan Online from Home

If what you want is the convenience of being able to apply for a loan from the comfort of your own home, then a private lender might be the best option for you. Private lenders generally enable you to fill out a loan application directly on their website at any time, day or night. Not only is this far more convenient than having to travel somewhere and fill in paper forms, but it can also help to speed up the processing time with direct online lodgement of the application.

Ensure you have digital copies of your supporting documentation, such as photo ID and proof of income, as you’ll be able to upload electronic copies of these documents with your loan application.

 Less Paperwork and Less Fuss

While a private lender will require some supporting documentation when you apply for a loan, it’s generally very streamlined, only requiring the absolute essentials. This means less mucking around for you and less fuss overall. Some other lending institutions will make you jump through hoops when it comes to paperwork. You can avoid a lot of that stress by teaming up with a private lender.

 Transparency

Another thing to note when it comes to the private lending sector, is that many private lenders also pride themselves on being very transparent when it comes to their loans. They tend to be open and honest about things like interest rates, terms and, most importantly, not having hidden fees. Any fees that are associated with a particular loan are usually displayed in plain sight on their website.

 In Conclusion

As you can see, there are certain advantages to seeking finance from a private lender, so keep private lenders in mind the next time you’re looking for a loan.