5 Benefits Of Looking Beyond Bank Loans For Finance
Many individuals and business owners are looking for new sources of funding and finance for their businesses or personal needs. Although commercial banks offer loans and such services, these aren’t the only way to go about a financial bind, if you’re stuck in one. Now, new ways of financing such as lending and auto title loans are taking over the market and establishing a position as commercial banks’ leading competitors.
Despite their increasing popularity, there are still some people who find loans from commercial banks to be safer while getting a loan from other sources seems to be a little daunting for them. This is due to a lack of awareness about the benefits that alternative sources provide if you’re looking to finance a new business or personal expenses. These alternative sources offer a wide range of benefits to borrowers that will help give a change of heart.
An important feature of alternative sources of funding is that they are a huge convenience for the borrower because of the easy application process that can be filled online. That means that you won’t have to go all the way to a bank and instead apply for a loan while you’re at home. Opting for alternative sources of financing such as auto title loans also have the added benefit that you don’t need to make continuous trips to the bank to discuss any clauses or terms of a loan.
Meetings with your lender can be scheduled at whatever times suit you instead of you having to move up your plans to meet with representatives. Another factor that adds to the convenience of applying for an auto title loan or a loan from other private lenders is that that process is hassle-free. Borrowers aren’t required to go through rigorous processes and routine checks like they would have to when applying for a loan from a commercial bank. An added convenience that is exclusive to auto title loans is that borrowers will still be allowed to use their car during the period of repayment.
2. Regulated Interest Rates and Flexible Payment Plan
Many borrowers that choose alternative financing methods find that the interest rates that are offered by options such as auto title loans and peer to peer lending will find that their interest rates beat those of commercial banks due to regulation. Some lenders charge specific rates for certain purposes to promote a responsible way of spending lent money. Borrowers will also find that depending on the type of funding they apply for, and whether there is collateral, they may even be offered low rates like those of commercial banks.
Borrowers that are approved for these types of alternative funding will be offered a variety of flexible repayment plans to choose from so that they don’t have to worry about meeting a deadline that is fixed at the cost of their comfort. Auto title loans offer the most flexibility since they allow the borrowers to choose from plans based on how long they will take to repay the loan.
3. Accessible For Everyone
In this imperfect world, it’s not possible to have the perfect credit score which is what stops many applicants from getting approved for a loan from a commercial bank. Applicants have to go through a lengthy process of providing financial history, status and credit scores before they have a shot at getting approved for a loan. However, this is just the beginning, and a deficiency in any of these fields can lead to refusal.
When it comes to alternative sources of finance such as auto title loans and other methods, you’ll find that there’s minimal paperwork required to fill out. Moreover, lenders won’t dive into lengthy periods of analyzing financial history which gives borrowers some relief. Many lose hope about being offered a loan at all due to low credit scores, foreclosure or bankruptcy, all of which turn a bank away from approving an applicant’s request.
This isn’t the case when applying to other sources for financing, and especially in the case of auto title loans, the criteria for being eligible is as simple as being the owner of a car. These viable sources offer many Americans some hope for the future without them having to take savings or retirement funds.
4. Various Uses
Unlike the scrutiny that applicants face from a bank about spending the loan, finance from other sources can be used for a variety of needs. This makes them an effective financial fix when one is in a time of need. These funds can be used to pay off medical bills, buying a house or even paying for home renovations and improvement which some people may think is silly but can often be a need.
These sources are exactly what new business owners are looking for. Due to their recent establishment and lack of proper income, banks often regard new businesses to be high-risk which is why the owners may have to forfeit months of hard work due to a lack of funding. Banks also require that a business be active for a certain period before it can be eligible for a loan, which can lead to new businesses losing precious time that they can use to improve revenue.
5. Takes Less Time
The ultimate benefit of applying for auto title loans or loans from private lenders is that the process takes much lesser time compared to that of commercial banks. Borrowers will find that after completing the form, they can be approved for a loan in less than 24 hours. This makes it an excellent option that people can turn to in times of a crisis or emergency.
Investors may lose precious opportunities by having to wait for weeks before a bank gives them an answer. This puts many people at a disadvantage when they try to apply for a loan from a commercial bank. In the case of auto title loans, you can get access to money very quickly so you can have peace of mind and focus on spending the money wisely.