Whenever you are cash-strapped and in desperate need of financing, seeking loans from banks may not be a viable solution. That is because these institutions have a lot of bureaucracy, which might prevent you from accessing quick credit. Luckily, many licensed money lenders in Singapore are ready to step into the gap by offering short-term financial solutions.
The financial solutions that are provided by a licensed money lender are more flexible than those that are offered by banks. The lower the loan amount you need, the higher the chances of you getting a loan. That explains why you should look at a legal money lender as a convenient alternative to commercial banks when you are in need of short-term loans.
Licensed money lenders are not your ordinary run-of-the-mill creditors who are out to defraud unsuspecting borrowers. That is because they must meet some stringent conditions before state agencies license them. Also, they must adhere to all regulations about service fees, lending amounts, and interest rates for them to be allowed to operate. Despite this, many people still associate private money lending with mobsters and shady loan sharks who are often quick to use harsh methods to recover their money in case a borrow defaults in his/her loan repayments.
Those who have benefitted from the services of a legal money lender attest to the fact that they have the ability to provide quick financial solutions with the flexibility that commercial banks cannot attain. Here is why they are a better alternative to mainstream lenders such as banks.
Most licensed money lenders target borrowers who want small loans. Their target market is individuals looking for quick cash to pay off medical bills and other minor bills. These lenders adhere to risk-averse loans as a way of preventing the negative backlash that is associated with unpaid debt.
This is one component that makes private lending an attractive solution for many borrowers. Since they give out significantly lower loans than banks and other financial institutions, legal money lenders often fast track the loan approval process to ensure that clients have money as soon as the need arises. The absence of red tape bureaucracy processes means that your loan request can be approved within an hour, provided that all the necessary documents are given to the lender.
It is known that you cannot qualify for a loan from mainstream lenders if you have a bad credit score. Banks often determine clients’ creditworthiness by scrutinising their credit score. You won’t be subjected to such scrutiny of you seek loans from private money lenders. That is because these loan professionals are tolerant to bad credit scores, making them a suitable alternative for former bankrupts.