Why Borrowers Are Opting for Non-Bank Lenders

Whether it is for short-term caveat loans or for first-time buyer mortgages, borrowers are opting for non-bank lenders when finalizing their search for some financial aid.

Traditionally, banks were the only place that one could borrow money from for projects such as property and business developments. However, non-bank lenders are now seen to be more flexible, with fast approval and excellent customer service skills, making them an attractive option to those needing a boost to their coffers.

Non-Bank vs. Bank Loans

There are a number of differences between non-bank and bank loans. Primarily, banks are more restricted in their operations due to regulations from the state. This is because of the important and unwavering role that banks must play in the national and world. Often, this results in them having caps on the amount they can lend and limitations on their flexibility.

Non-bank loans can, therefore, usually lend more money, though their interest rates are variable, and, of course, they cannot offer certain alternative features that banks can, such as a savings or current account. The speed of which non-bank lenders loan out large amounts of money is highly attractive, though, and one of the main reasons borrowers are continually choosing them.

Customer Service

Perhaps the worthiest reason that consumers, investors, and developers are choosing non-bank lenders, however, is that they often offer superb benefits for the customer, not least in terms of excellent customer service.

A lender should be completely transparent in the way that they work and how much they charge, while flexibility allows clients to get on with their work and lives with a peace of mind about their finances. Non-bank lenders are often superior for finding personalized solutions, too, to help borrowers get the money that they need quickly.

Flexibility

A lot of non-bank lending is based on flexibility. Unique repayment plans are agreed with clients so that both parties are comfortable with how the loan is going to be settled, which is a far more alluring option than a bank’s rigid lending parameters.

There are some fantastic official resources on repaying debts such as loans, and a lender should also be willing to communicate and be flexible on this, should any issues arise. A friendly team of lenders who understand your circumstances make for a pleasant borrowing experience.

Fast Approval

Finally, and most important for some borrowers, is the speed at which non-bank lenders are paying out certain loans. Same-day or within 24-hour loans are hard to beat in terms of convenience, and many banks do not offer this service.

When in need of money quickly, non-banker lenders are rapid in their response times, and whether it be for property development, business cash flow, or consolidating debt, a situation is assessed in no time. Then, presuming all is well, the money is paid out without checklists or unnecessary red tape.

When speed, convenience, flexibility, and personalization are considered, it is no wonder that borrowers are turning to the value and accessibility of non-bank lenders.