For people who have excellent credit scores, getting financial assistance from banks or financial institutions with attractive interest rates is as easy as ABC. However, the business world is a bit realistic and cruel. If you have bad credit history, you will find it hard to apply for loan from regular banks or traditional financial institutions. What should you do if you need money urgently for starting up a business or further your studies? Having bad credit should never affect your plan in life.
I would suggest you to search around to look for private lenders from the internet. The private lenders can be individuals or companies. In my personal point of view, searching for online lenders is the fastest way because the time taken for approval is shorter and less paperwork required.
If you prefer to obtain loan from individuals, you can search for person-to-person loans or sometimes they are so called P2P lending. The person who accepts your request will transfer the money to your account with conditions. The interest rate charged may be higher and the term of repayment may be shorter. The reason is simple. The lender needs to take higher risk because you may “runaway” from your debt. It may be time consuming for you to search for individual lenders. To save time, you are suggested to go through the online lending clubs. They facilitate private loans from one person to another. They will provide guidance for you.
Some people feel more secured to look for companies which provide quick loans. If you have decided to obtain financial assistance from the private companies, you are reminded to check with the US Securities and Exchange Commission (SEC) to find out whether the companies are registered with this commission. In general, all reputable companies register with SEC. At the same time, you should also check with the Better Business Bureau to find out whether there is any complain about the companies.
After you have identified the lenders through internet, what do you need to do next?
You need to get ready all the necessary documents to be presented to the lenders. You are advised to collect your monthly pay stubs, your monthly earning invoices and other documents which are able to support your employment security. If you need the money to set up a new business, then you should get ready your loan proposal. You need to show the lenders that you have the financial ability to pay back the loan. For example, you should include your targeted monthly sales in your business proposal.
Last but not the least; different lenders may have different application processes. You are advised to follow the instructions given online carefully and complete the whole application process. Bear in mind that each lender has its own policies in regards to interest rates, loan amounts, terms of repayment, loan approvals, etc. Before you make your final decision, don’t forget to compare the packages one by one. Try your best to save the cost of obtaining loan.None found.