Why You Should Choose A Private Loan

If you’re having trouble getting approved for a loan through a traditional lender, you might want to choose a private lender. Private loans are similar to standard loans, although they can be easier to apply for.

Generally, you won’t need to supply a lender with nearly as many documents as you would a bank. Private loans also usually have a quicker turnaround time too, meaning that you won’t need to wait days or weeks to find out if your application has been approved.

There are many more benefits to getting privately funded. Read on below to find out more about why you should choose a private loan.

Why you should choose a private loan

Private loans differ from traditional bank lending in that there are often non-traditional qualifying guidelines. Individuals can apply for a private loan if they are finding it difficult to receive finance from a bank.

Private lenders can be either an organisation or a private individual. Unlike banks, private lenders don’t have traditional qualifying systems, meaning that getting approved for a private loan could be much easier.

Private loans can be used for many things, such as buying or building a house, purchasing a business, refinancing or urgent funding. Short and long term financing can also be options when it comes to private loans.

How are private loans easier?

There are many benefits to applying for a loan with a private lender. Generally, most private lenders have a much easier application process compared to those of traditional lenders. It’s possible that a private lender won’t require as much documentation during your application, and can have you approved faster than a bank will.

Applying and getting approved for a private loan can be quite easy overall. One of the benefits of a private loan is that generally, there are faster approval times. This is usually because there is a lot less paperwork compared to a traditional loan, which may take weeks to be approved.

Many private lenders offer far more flexible loans, which can be tailored made to suit your needs. This means that with a private lender, you have less chance of being stuck in a one size fits all loan.

You may also find that it’s easier to be approved for a private loan if you have a bad credit score. Many private lenders offer specialised services and loans to those with impaired credit history.

Some other benefits of private loans are:

Quicker settlement – If you happen to require a loan quickly, the approval process for private lending is faster, and usually involves less paperwork than those of a bank.
Specialised loans – Private lenders are often able to cater to those after a wide range of loans while having far less strict rules than traditional funding. This may be ideal for those seeking short term finance, or those in need of funding quickly.
All credit histories – Having a good credit history may not be necessary to gain approval from a private lender. Many people seeking finance are rejected by banks for having less than ideal credit history go on to successfully apply for a loan with a private lender.
Fewer requirements – Banks will generally want excellent credit, a good repayment history, income requirements, and proof of income when approving your loan. Private lenders often have fewer requirements, making the whole process much easier.
Flexible payment terms – Private lenders may be able to offer you a more flexible rate compared to a bank.

Types of private loans

If you’re looking for a private loan, you might be wondering if there are different types. Generally, private loans can come in all shapes and sizes. Depending on your lender, some of these loans may include:

Bridging loans – These are short term loans that are taken out to buy a new home before selling an existing property. These are interest-only loans that are then repaid after the sale of the original property.
Caveat loans – A caveat loan is a short term loan option that allows fast access to funding when secured against additional property owned by the developer. Caveat loans can be the fastest to both apply for and settle. Only a viable option for the short term, caveat loans are generally only for a few months. The private lender decides how you will repay the funds before approving your loan.

Bad credit loans – Are loans usually sought out by borrowers who have a bad credit history. This can be caused by a variety of factors, including overdue bills or defaulting on a previous loan payment. By having a poor credit history, lenders are usually loath to lend to you. Lenders may perceive you as a high risk. These loans are usually short term and fixed-rate, allowing the borrower to repair their credit history.
Second mortgages – These occur when a borrower has already taken out the first mortgage on their existing property, before deciding to take out a second loan against said property. For this type of loan, the first mortgage must be repaid before any money goes toward repaying the second.

Where does Tiger Finance come in?

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

We have helped countless Australians with both good and bad credit ratings get approved for private funding. We’ll take care of all the hard details for you, and will have you approved before you know it.

How we can help

Our finance specialists can help you find the right loan. If you are one of the many Australians finding getting a traditional loan too difficult, Tiger Finance can make the process simple and pain-free. Call today to speak to one of our loan specialists in a free initial consultation.