PRIVATE BORROWING

PRIVATE LENDING PRIVATE BORROWING LOAN FROM INDIVIDUAL PRIVATE MONEY LENDER WORLDWIDE PRIVATE PERSONAL LOAN PRIVATE INDIVIDUALS THAT LOAN MONEY

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 LOAN

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 as a private lender acts as loan provider to assist fund your purchase from a car to a real estate project.

Private lenders are by definition private individuals that loan money for personal loans often acting as international money lenders who provide with cross-border credit facilities to borrowers who seek funds from strangers.

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.
Private personal loan.
Private mortgage loan (including down-payment).
Private loan for entrepreneur of business people.
Private unsecured loan.
Private payday loan.
Private lending to pay bills.
Private debt consolidation loan.
Private student loan to pay school fees and studies.

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 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 poor credit scores.
Student.
Pensioner.
Entrepreneur.
People with no job.

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:

Private investors who are listed in the internet.
Anonym private lenders who use peer-to-peer and crowdfunding platforms to lend money.

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.
Crowdfunding and P2P.
Worldwide private lender or foreign private money lender.
Friends and family.
From strangers.

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: