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Oakville Private Lenders
What is private lending?Any entity that is not a regular, major banking institution, payday loan provider or credit union can be Private Lenders. Private Lenders are often private companies that are hard money lenders, small businesses that deal in loan products and even a family member or friend can be considered Oakville Private Lenders. There are several differences between major banks and Private Lenders such as banks are regulated by the government whereas Private Lenders are not regulated by the government, and banks have stricter criteria for qualifying processes for loans than Oakville Private Lenders. Another difference between Private Lenders and banks is that Private Lenders works with each person closely to get that approval for a loan! If borrowers approach a family member or friend as Oakville Private Lenders, there should still be a contract drawn up to protect both the lender and the borrower, outlining the terms, duration for payback, monthly amount and any interest rate imposed.
How does private lending work?Private Lenders approach private sources for funding, so they in turn can provide loans to people. Private Lenders (when borrowers are working with a professional organization) will work diligently on a persons’ financials, to figure out the level of risk involved (typical to a not-so-perfect credit rating) and just how much ‘loan affordability’ there is available. A persons’ total income has a big part to play when applying for a private loan. Borrowers should be prepared to pay a higher interest rate if an application is approved with Oakville Private Lenders, as there is an element of risk involved. Private Lenders and their private funding sources prefer to work with people on loans that will be applied to property, real estate, vehicles, or any other ‘sellable’ item, as this adds a layer of security to the lenders.
How can private lenders offer customizable credit solution?Obtaining the money needed via Private Lenders loans will have a positive, gainful impact as the borrower can now proceed to move forward with what the funds are intended for. No one likes to be turned down for a loan because of past credit issues or income variances and this typically happens at major banks. Oakville Private Lenders do not hold a person’s history against them, rather, they are more willing to shoulder some risk and help people step forward with their plans, whether it is to do home renovations, buy a new vehicle, purchase a piece of property or settle down into a new home.
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