Private Borrowing is the first place dedicated to private borrowing. Thanks to Privateborrowing.com you will find as borrower new opportunities to obtain a loan and as investor to obtain a better return without using a bank.
Private borrowing is simply the result of economies which have worsened and seeing more and more borrowers turning to private personal loans. These people are looking for a loan to cover a financial urgency or finance a purchase.
DEFINITION OF PRIVATE BORROWING OR PRIVATE LAON
Private borrowing is defined as a financial transaction between a private lender and a private borrower, with the first party lending money to the second party without involving a bank
Private borrowing means that you are borrowing cash from a private lender, not a bank or any financial institution. A private lender acts as loan provider to assist fund your purchase from a car to a real estate project.
WHAT TYPE NEEDS ARE COVERED BY A PRIVATE LOAN?
Typically a demand for a loan from private borrowing is supposed to cover all needs which are needed to be financed such as:
PRIVATE LOAN FOR A CAR
A private loan car is a funding facility granted through an individual lender to help another individual borrower to purchase a vehicle in case his house bank is rejecting his financing application.
PRIVATE PERSONAL LOAN
A private personal loan is often used for a large number of needs from buying consumers good or paying off existing private debts without having to add any security for the lender.
PRIVATE MORTGAGE LOAN (INCLUDING DOWN-PAYMENT)
A private mortgage loan is a particular type of funding given the amount and the tenor provided to repay such a financing which also often including the down-payment which is usually requested through the banks. Private lenders for such a loan comprise private companies and agencies who have specialized on housing loans.
Because of the positive development of the private borrowing via the p2p industry there is no explicit need to use bank channels to finance a mortgage.
Private mortgage differences to a bank mortgage:
PRIVATE UNSECURED LOAN WITHOUR COLLATERAL NO COSIGNER
A private unsecured loan without collateral nor cosigner is the best type of private cash facility a borrower can obtain, knowing that private loans are dedicated to individuals who couldn’t present any security or guarantee to their usual lender, their bank.
PRIVATE PAYDAY LOAN
A private payday loan is consisting of funding facility of short term and small amount nature which is offered by individuals who charge huge interests rate knowing that this is the ultimate option for the borrower.
PRIVATE LENDING TO PAY BILLS
A private loan to pay bills belongs to the most typical use of private lending especially when it comes to emergency loans where a borrower got only a short time to pay his due amount prior facing legal measures.
PRIVATE DEBT CONSOLIDATION LOAN
Private debt consolidation loans are useful so far as they allow a borrower to consolidate all his debts obligations into a single and unique loan which has a positive impact on terms particularly on the monthly repayment plan which considers lower interest rates and longer loan maturity.
PRIVATE STUDENT LOAN TO PAY SCHOOL FEES AND STUDIES
A private student loan is dedicated to und all the costs related to the studies of a borrower who cannot afford to pay the university fees and the costs of living in view of the absence of any parent support or bank support.
PRIVATE LOAN FOR ENTREPRENEURS OR BUSINESS PEOPLE
A private loan for entrepreneurs or business people is often required in case the company is facing difficulties to get access to fresh money given the reluctance of the banks to help particularly small businesses.
PRIVATE BORROWING FOR WHOM ?
A private loan is normally dedicated to specific borrowers who are facing obstacles when asking banks for classical loans.
Several types of borrowers opt for a private loan:
PEOPLE WITH BAD AND POOR CREDIT SCORE
People with bad credit or poor credit score tend to claim funding from private lenders given the fact that their banks and usual loan brokers maintain a conservative attitude towards this type of borrower.
A student exploits generally all possible options in order to fund his studies including private financing take into account the high interest rates charged for private loans knowing that he will be able later to repay when he gets his first job.
A private loan for pensioner is often a financing alternative when retired people are receiving small pensions so that they cannot afford to pay their bills or travel during their retirement time.
Private funding for an entrepreneur is part of the total financing an enterprise uses as it combines often bank loans and private investors loan to achieve the right liquidity balance.
PEOPLE WITH NO JOB OR UNEMPLOYED.
Private loans come to light when borrower have no other stable source of income than the social allowance and therefor often tap for money into their close connections such as friends or relatives.
OPTIONS OF PRIVATE BORROWING
There are two kinds of private borrowing dealing with types of segments of private money lenders.
The first private lender group consists of friends and relatives (family). Many borrowers address their financing needs to friends and family to fund a car or obtain an advance payment for a mortgage. This is an easy option as being well known as a borrower and trust being the basis of lending. However in case of difficulties to reimburse the loan, the damages on the relationship can become irreparable.
The second segment of private lenders is mainly composed of professional lenders:
LIST OF PRIVATE LENDERS
Several lists of private lenders circulate through the internet and are often more confusing than helping as the listing often suggests a directory with private companies offering loans for terrible terms and conditions indestead of private lenders who propose real alternative financing to bank lending.
Private lenders mainly consist of :
PRIVATE LOAN SHOP OR COMPANY
A private shop or loan company is by definition an agency who grant a private loan to individuals and business people either on their own account of for other private investors.
CROWDFUNDING AND P2P
Crowdfunding via peer-to-peer (P2) lending is a formalized form of private lending since it brings in structured and legal manner cash rich private investors and individuals who are looking for money.
Peer to Peer (P2P) lending refers to direct loans between lenders and borrowers via an online platform without the intervention of any financial institutions. The P2P platform facilitates the application through the credit process for the borrower and the lender and proceed with credit scoring as well as underwriting.
P2P services are now using specific algorithms to assess the credit risk of any borrower decide what interest rate to be applied. The platform provides to transfer of the money from the lender to the borrower and makes sure the borrower repay the principal and interests in accordance to the loan agreement.
WORLDWIDE PRIVATE LENDER OR FOREIGN PRIVATE MONEY LENDER
Worldwide private lenders and foreign private money lenders acts always from overseas helping individuals who have challenges to obtain credit approval in their own home country.
FRIENDS AND FAMILY
Private loans from friends and family members is the most traditional way for private lending this option is now existing for centuries and is probably the trustiest one for lender and borrower.
PRIVATE LOAN FROM STRANGERS
Private loan from a stranger is the classical way to obtain fresh friends for a private lender not knowing who is behind the money and therefore called private funding from strangers.
ADVANTAGES OF PRIVATE BORROWING
The reason why private borrowing is booming are multiple:
CONS OF PRIVATE BORROWING
There are still some inconvenients for both parties when proceeding with private borrowing:
Privateborrowing.com has selected the best options of private lenders.
PRIVATE BORROWING OPTIONS
ONLINE PRIVATE BORROWING WORLDWIDE