In Singapore, it is normal to approach a bank or a traditional lending institution when you require financing for a project. These are the options that mostly come to mind whenever the need to borrow arises. However, they may not always be the best choices. There are many benefits that you stand to gain when you choose to work with private money lenders Singapore.
Listed below are some of the key benefits of borrowing money from a private but legal money lender.
Financing non-traditional venture
Traditional lenders such as banks often have very specific targets in terms of the assets they can finance. They mostly fund investments properties and they opt for investors who are already experienced. This means that new investors or properties whose return is not very clear can easily fail to get funded. Banks will pass on any venture that seems risky or complicated.
A private lender may not mind the type of investment as much. The only concern would be how repayable the money borrowed may be. As long as the private lender is trustworthy, then any venture can be funded.
- Credit History Does Not Always Matter
There are times when one suffers from bad credit history due to business failure, bankruptcy, divorce, or such other unintended circumstances in life. It is therefore unfair when one fails to get financing due such occurrences. This is because they do not tell the whole story. Unlike private money lenders, the first thing they review to approve a loan is one’s credit history.
With private money lenders, what matters more is the security one offers, this can be a collateral, cash or a business plan. Credit in this case will not weight down the decision to lend as much.
- Speed of Approval
In most cases, the approval of a bank loan could take weeks. This means that they are an odd choice when it comes to getting money for an emergency. In fact, there are no guarantees when it comes to getting a loan from a bank. With private money lenders Singapore, financing can be done in as little as a day.
- Negotiability of Terms
Although private money lenders Singapore may require higher interest for their loans, their terms are often negotiable. However, even the interest may be negotiated down with time. As long as the borrower proves that the investment is worthwhile, then interest can be reduced to accommodate a good investor.
Other minor benefits include minimal red tape that is common with most traditional lenders. There is also less paper work to fill in and fewer approvals are required to get funding.