Tag: Non bank loans

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The difference between Non-Bank Lenders and Traditional Lenders

banks vs non-bank lenders
banks vs non-bank lenders

Years and years ago, if you needed a loan, you went straight to the bank to assess your available options. These days, non-bank lenders have emerged, offering a legitimate alternative to traditional lenders, and adding a competitive edge to loan marketing.

Depending on your circumstances, it may help you to step away from traditional lenders and hunt for a non-bank lender. But do you know exactly what the difference is between non-bank lenders and traditional lenders?

We will take you through both options and look at exactly how they differ in terms of what they offer to you, so you can judge which one would best meet your current needs.

What Are Non-Bank Lenders?

Essentially, non-bank lenders are exactly what you think. Non-bank lenders are alternative lenders who are not traditional banks. They don’t have a banking license and are not a mutual, ie a bank, a building society or a credit union. Nonbank lenders are called Authorised Deposit Institutions, or ADIs.

Unlike banks, they can’t accept deposits, so they have to source their money from elsewhere. They often take out a loan from the bank at wholesale rates and then lend this money on for a profit.

What are Traditional Lenders?

Traditional lenders refers to banks and other ADIs defined above. They have been the source of loans throughout history, and only recently has this turned around with the proliferation of non-bank lenders entering the market.

They are regulated very differently to non-bank lenders. Banks are largely regulated by the Australia Prudential Regulatory Authority (APRA), while non-bank lenders are regulated by the Australia Securities & Investments Commission (ASIC).

Benefits of Using a Non-bank Lender

While choosing to go with a non-bank lender may not be the obvious choice, there are a number of benefits that come with using one.Lower interest rates: They borrow their funds at wholesale prices, which offers them a larger margin to work with than the banks, and can often mean they have lower interest rates than the banks. They also have limited fees as they don’t have any of the overhead costs that traditional lenders face.

Regulations: being subject to different regulations means non-banks are often a lot more flexible when it comes to lending. This enables them to tailor the process to specifically meet your needs.

Take on high risk

Whether you have a bad credit history you are trying to repair, or a business start-up, non0bank lenders are more likely to take a risk on you than traditional lenders.

Better customer service

As they are smaller than the banks, non-bank lenders often offer a more personalised approach to their customer service, so you will receive more attention to your loan and what you want out of it.

Lower down payment requirements

While banks take about 20% down payment on mortgage loans, non-bank lenders take a lot less, sitting at about 3.5%. For those who have been turned away by the bank, this is a great option to make owning their own home a possibility.

Faster approval process

With fewer hoops to jump through, non-bank lenders have a much faster approval process than traditional lenders, so you have the money in your hands even faster.

Specialists

Often, non-bank lenders can specialise in a particular loan. While traditional lenders offer an array of financial services, by specialising in just one, non-bank lends have a greater insight into that type of loan and can help you out more.

Benefits of Using a Traditional Lender

There are also some benefits that come with using a traditional lender that shouldn’t be overlooked.

Security

One of the biggest, is course, security. The banks are well-established institutions with a degree of trust built into their name. Many people feel safer with this option and sticking to what they know – especially if they already bank with them.

Less vulnerable

As banks are much larger than non-bank lenders, there is a perception that they aren’t as vulnerable to any economic hardship that may come about.

Which One Is Right For Me?

Many people perceive that traditional lenders are the best and safest option, especially when it comes to taking out a big loan, such as a home loan. This just isn’t the case anymore, and by not considering all your options, you are limiting yourself and potentially missing out on the right fit for you.

Loans Based Upon Your Unique Situation

Working out which option is best for you really does come down to your individual circumstances. You need to make a choice based on what you need the money for, what your credit situation currently is, and which service is more compatible with your needs. Shop around and find the best option for you.

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Private Lenders

What Are The Benefits Of Using An Alternative Lender?

what are the benefits of using alternative lenders

Following the GFC, banks became very cautious with how they lend their money. They didn’t lend to certain borrowers particularly those with bad credit or small businesses – in the fear that they would not be able to get their credit back. As a result, many businesses fell into bankruptcy because they had no one to turn to for financing.

If you’re looking to start a business, it can be even more challenging to secure financing from a bank. To get your business operational you may need some sort of finance. This is because you cannot start a company without the necessary capital to sustain it. When banks close the door your business dreams, just remember that it is not over yet. Aussies have one more form of financing that they can use – and that’s alternative lending. Slightly different from the traditional bank, alternative lenders have become quite an attractive choice for those that are in need of a loan.

What Is an Alternative Loan?

Alternative loans are the kind of businesses that aren’t provided by traditional lenders – for example, banks or credit unions. Examples of these kinds of loans are private loans, bad credit loans, wholesale funds, peer-to-peer loans, start-up loans, and so on.

Each of these loans has its own terms and conditions – which is why you must research accordingly. Depending on the lender, you might be asked for a higher interest rate, or given a smaller loan amount. But depending on your preferences, you will choose the one that is most suitable for you. Overall, alternative loans offer a second chance at finance.

Why choose an Alternative Lender?

There are various reasons why you might want to go for an alternative lender.

The Application Process Is Quick and Easy

Every alternative lender will have a straightforward loan application process. Technically speaking, all you have to do is provide some basic contact (or business) information, along with some financial data. A lender will need to quickly assess your financial situation to see whether they have the right loan product available.

Depending on the lender, you can expect to have your application completed in as little as 15 minutes, provided you are working with a tech-savvy lender. If you are borrowing online, it is even more convenient, as you will not have to get out of the comfort of your home in order to make the application.

Funds can be released quickly

It takes a few minutes to a few hours for your application to be approved – all depending on the time at which you make your request. The quicker that you work with the lenders, the faster you can get your funds. At the Australian Lending Centre, we offer an easy way to upload your documents. It takes a matter of minutes and can be done from your mobile. From the moment your application is approved (assuming it is), it can take as little as 24 hours for the money to appear in your account (depending on the lender)

Some lenders do so in 48 hours, but this is still the better alternative to traditional banks, for which you will likely have to wait entire weeks. This way, it will be much easier for you to start off with your projects right away.

You May Borrow with Bad Credit

If you have no credit or bad credit, there is a high chance that banks will not lend you money. They will see you as a red flag – and they will believe that you will not be able to make your payments on time. Unless your credit is above a certain number, there is a high chance that your request for a loan will be denied.

However, alternative lenders such as Bad Credit Loans generally have far fewer requirements. Whilst they still asses your finances, they will still lend to bad credit borrowers. Therefore, if you had trouble making timely payments before or had no luck with traditional lenders, then there is a high chance that you might be luckier with an alternative lender.

You May Use the Funds However You Want

Certain lenders expect that you use the funds that they give you in a particular way. For instance, if you are the owner of a construction company and opt for taking out a business loan, then you need to specify what you plan on doing with that money. As an example, you have to specify in the application that you need the loan to buy a bulldozer – and the lender will know that your profits will start growing with that purchase.

However, with alternative lenders, this will pose no problem. For all they care, you may use that money to buy a bulldozer, pay old Jim’s paycheck, or purchase a new fancy pen for the office. Obviously, you will use that money wisely – but what matters here is that the lender won’t set conditions on how to use that money.

Should I use an alternative lender?

Alternative lenders represent a very convenient solution when you are running low on money, but the banks won’t give you a loan. Alternative lenders offer people who have been refused in the past with a second chance at finance. All that you have to do now is find the right lender that will provide low-enough interest rates.

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Fast Loans

Why You Could Afford Same Day Cash Loans

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Are your personal finances looking rather blemish?  Fortunately, you are not alone. Thousands of Australians get caught up with their finances. Do you need money right away to pay for rising electricity bills, an overdue credit card or the mispayment for after pay?

Some people have insufficient income; others are in between jobs while some people simply need to keep up with their rising business expenses. The fact is that sometimes we need money, and we need fast and flexible options. Same day cash loans with no credit check can help you get a grip of your financial situation and brighten it all up.

Whilst a loan may seem like a daunting option, it can be the saving grace. Managing and planning your small cash loan, can help you regain control and get back on the financial road to success.

Here are smart tips to manage your same cash loans wisely

Develop a desire to break away from a life of scarcity

Every problem is an opportunity to make that big step in life. Getting a loan is the first step to financial control. There are times that you may find yourself not getting enough money from your income sources.

Some projects don’t end up successfully and there are also life-emergencies that you need to deal with. But, it is the desire to be stable that can promote you to become productive and creative with your finances. At the same time, prepare yourself for a little discomfort. The road to success may not be smooth. In fact, you have to get out of your comfort zone so that you can use the challenges that come along your way in order to become financially stable.

Start budgeting immediately

There is no ideal time to start a budget. Once you decide to keep your expenses at bay, creating a budget becomes an urgent necessity. Write down your cash flow, assets, and liabilities. Allocate the money to your priority expenses. Make sure that you leave something for your daily expenses; otherwise, you may have to take out another loan just to get by before the next payday. Budgeting planners can make it even easier to visualise where your money is coming and going.

It is also important to consider your smart goals when making a budget. Remember that loans don’t make you rich, but it can make you worse off if you know how to use it. Debt is considered as a money management tool.  All it takes is intelligent goal setting and follow-up intervention to adhere to the plan.

Your budget can serve as a wealth management structure that helps you maintain financial discipline along the way. Don’t be afraid to set aggressive financial goals, as long as they are realistic. You must be able to confidently stick to these goals.

Work through these goals with a sense of urgency. Don’t put off budgeting for tomorrow – no matter how tempted you are to do so. You can maintain a logbook, to jot down all your daily financial activities. Note the expenses and debts you settled for the day and their value of importance in your daily life. This way, you can monitor your progress and evaluate your plans of action. In a month, you will already see how much of your plans are actually being carried out and which ones are not working. If you are moving in the right direction, your goals are realistic and obtainable.

Practice makes perfect

Develop the tools and learn how to succeed financially. When you can’t quite reach your goals the first time, keep trying. As long as you do your best, repeatedly, to make your budget work, you will definitely get better in time. Incremental changes are also worth celebrating. Small changes daily will make little gains and those steps will add up as you keep doing the work.

To be truly successful in budgeting and debt repayment, you need to have exceptional discipline and perseverance. Commit to live within strict budget constraits is crucial to living within your means. Don’t spend money your don’t have and you won’t increase your debt. By following your own budget, you’ll likely to have reduced debt, and you will also feel a high degree of satisfaction for being able to stick to your financial plan.

Financial stability is a goal we can all achieve

Stable finance is a goal we can all accomplish. Australian Lending Centre could provide a same day cash loan with no credit check if you qualify with our requirements, regardless of your credit score or the absence thereof.

We understand that people need financial opportunities to start or build a good credit file and a chance to improve their finance by way of a loan. If you are willing to learn the right ways of setting up a business, or for managing your debts and increasing your revenues, Australian Lending Centre can help you.

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Debt Management

How to Successfully Get Out of Fast Loans

How to Successfully Get Out of Fast Loans
How to Successfully Get Out of Fast Loans

Fast loans are cool. You just apply online and get the money in a really short time. However, it’s been proved that these loans can get you in all sorts of trouble due to – exactly – their fast nature, in the sense that they have to be repaid in record time. This could prove to be difficult to do since their interest rates are exorbitant. You should be familiar with how to get out of fast loans before you apply for any. And don’t even think that the solution to this is to repay a loan by getting another one.

A Couple of Solutions

Consolidate the loans

Dealing with multiple fast loans is next to impossible, all the more so when each of them has a different interest rate. If you’re in this unfortunate position, debt consolidation is your best shot at getting out of those loans. When you consolidate these loans, you roll them into just one. Needless to say, it’ll be so much easier to repay just one loan than multiple ones. Debt consolidation could also reduce the overall interest rate on the new loan, so there’s one more reason to try this out.

Get a better job

The more income you have, the easier it will be to repay your loans. This is obviously easier said than done, but it certainly wouldn’t hurt to attempt to do it. The excess money you’re left with after paying for your expenses can be used for making some larger repayments. Thus, you’ll get out the debt quicker. Before you do this, make sure that you can change jobs mid-debt. There are certain lenders who frown upon this (for reasons best known to themselves). If it’s possible, however, don’t even think twice.

Stop getting other fast loans

We shouldn’t even need to say this, but we ought to, since many people go into a debt spiral unconsciously. If you keep on borrowing money, you’ll never get out of debt. Before you know it, you’ll have to consolidate the debt or just sink lower and lower. This is by far the simplest way of getting out of fast loans. Just stay away from them. If you need more money, ask your family or friends for help, but don’t get another loan.

Put in the extra hours

If possible, ask your employer whether or not you could work extra shifts, just until you’ve accumulated enough money to pay up those fast loans that nibble at your sleep and wallet.  Another thing you should consider is getting a part-time job. Any extra money is more than welcome, especially when it’s in an amount that allows you to pay your debt. Yes, you’ll be exhausted and will probably have bloodshot eyes for a while, but it’s totally worth it.

Embrace frugality

Start cooking instead of eating at fancy restaurants. Stop watching TV for hours on end and read a book. Consider buying in bulk and using food coupons for that. This should be a last-resort type of solution that you should use only when it’s impossible to get a part-time job or fire on all cylinders at the job you have currently. Frugality isn’t half bad. In fact, you might stay frugal for the rest of your life after seeing the perks it has to offer.

Don’t waste money on useless things

When you go down to the mall, everything looks amazing instantaneously. However, you don’t actually need 80% of those things. Use the money wisely for extra payments. All those shiny things will be there after you’re out of debt, too. Don’t toy around with your fast loans. They tend to have a snowballing effect and you can easily end up in a situation where it will be impossible for you to get out of debt. A lot of people waste huge sums of money on all sorts of things and wonder why they can’t get out of debt. Don’t be one of those. Get rid of your debt and afterwards, you can revel as much as you want. Until then, though, put your money to good use.

Fast loans are among the most-taken loans in banking. No one can say that they’re not efficient at what they’re supposed to do, but they’re quite dangerous and one needs a thorough understanding of how they work in order to stay safe. Australian Lending Centre can answer your questions in regards to this type of loan, as well as provide some of the best offers you can find. No matter what problem you have, they will be more than happy to assist you with it.

And as a parting note: stop taking more loans if you’re already sinking in debt. That’s naturally not the way to get rid of loans.

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Business Loans

Business Loan Despite Bankruptcy

business loan despite bankruptcy

Bankruptcy is a highly dreaded word in the realm of financing and getting a business loan despite bankruptcy is a bit difficult. Even though it is dreaded, many people end up in a situation in which filing for bankruptcy is the only solution they have. Nonetheless, considering that you’ve done that in the past, a looming question is can I apply for business loans regardless of that? As you might expect, the answer to this question isn’t a fixed one – there are many factors that should be considered, which we’ll outline in the present article.

Bankruptcy Can Be a Fresh Start

Irrespective of the negative connotations associated with bankruptcy, you should note that this isn’t the end of the road – or at least it shouldn’t be this way. Even though it isn’t an easy thing to do, the most challenging process follows after filing for bankruptcy. This refers to aiming at rebuilding your finances and credit.

Generally speaking, a bankruptcy statement will remain on your credit for a few years’ time. Therefore, if you apply for business loans afterward, your capability of getting financing won’t be affected in any way. On the other side, if the bankruptcy statement still is still present on your credit report, which will, inevitably, impair your creditworthiness and reliability as a borrower.

Can I Apply for a business loan despite bankruptcy?

Yes. But bear in mind that your options will be limited. Generally speaking, the longer you wait after you have filed for bankruptcy, the more likely you are to get convenient loan terms and interest rates. At the same time, there are some lenders that are more open to working with you, as opposed to traditional banks whose lending criteria are rather stringent.

Nevertheless, the downside is that the interest rates and additional fees will be significantly higher than they normally should. Therefore, before you apply for business loans, make sure that you can afford to make repayments. If you can’t, this will imminently worsen your financial situation. Evidently, applying for a loan when you’re struggling financially is a decision that requires a lot of consideration and in-depth thought.

The Differences Between Personal and Business Bankruptcy

Considering that you own a business which has established credit, you might have the option of applying for business loans. In this scenario, your firm’s credit rating will be taken into account. In other words, your personal bankruptcy file won’t affect your ability to get business loans in any way.

Your personal credit score is a major constituent for most lenders. That is to say, your credit rating and personal finances are of major significance, even though this is to your disadvantage. Hence, depending on the state of your finances, you might be unable to get financing. Or, your only option could be getting business loans with unfavourable terms and interest rates.

What Steps Can You Take?

Separate Business and Personal Finances

Before anything else, you should strive to distinguish between your personal and business finances. The thing is that, if your business is new, this might not be a possibility. But, if you’re an established business owner, you should definitely separate your personal finances from your firm’s finances. Otherwise, you are inevitably taking unnecessary risks.

Apply for Secured Business Loans

If you really need a form of financing, your only option could be using your valuable assets as collateral for new loans. By adding collateral, you are instantly minimising the lender’s risk when they borrow you the money. This could increase the likelihood of having your application approved.

Be Patient

If you need a business loan despite bankruptcy, avoid requesting a $500,000 loan immediately afterwards. On the contrary, take up smaller amounts of money instead, and focus on making the repayments – this will allow you to rebuild your credit and prove that you’re trying to get back on your feet.

Explain The Circumstances of Your Bankruptcy

Talking openly about the circumstances that led to your current financial situation can be helpful when you apply for a business loan despite bankruptcy. There are situations in which unexpected circumstances can cause unwanted complications. We’re referring to health problems, divorces, or natural disasters – these could seriously mess up your financial life without any fault of your own. Therefore, by being upfront and transparent, you can increase your chances of getting financing for your business.

At the end of the day, it is mandatory to comprehend that each lender has different criteria that ought to be taken into account. Do your research beforehand, so that you don’t end up sending numerous applications all around without any results. Australian Lending Centre can help you – make sure you visit our website to find out more about our loan offers.

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Personal Loans Home Loans News

Mortgage Broker vs. Banks: Which Is Better?

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The verdict of a mortgage broker vs. banks contest may seem difficult to assess at first glance. Both can help you with good rates on your home loan, but there are some things they do differently. Maybe, after all, you’ll be the one to say who the winner is in the mortgage broker vs. banks competition.

Mortgage Broker vs. Banks – What Does a Broker Do?

A mortgage broker is fundamentally an advisor. This is the person that will investigate whether you are worthy of a loan or not. You guessed it – your credit score matters, but that’s not all. Your income and, subsequently, your ability to pay the loan back will be taken into consideration, as well. If you are eligible, the broker will look for the best offers that suit your needs.

The greatest advantages of using brokers instead of banks are their expertise and the fact that they may not frown at your bad credit. They know a lot of other lenders that can provide you with suitable offers. Because they are not affiliated with any banks, they are sure to find lenders that don’t really care for your stained credit file. They may even be specialised in serving people in predicaments. This particular section in the mortgage broker vs. banks contest is definitely won by the former.

A mild disadvantage when it comes to brokers is their number. There are so many that it may be difficult to choose the best one. Before you call on an agent, make sure that he has been in the business for a long time. Simple research can be very useful. Friends or relatives that previously used brokers to get good deals can also guide you.

What Do Banks Do?

In the same fashion, banks will assess your creditworthiness by having a bank loan officer to manage your files. Banks are often scarier than brokers because of the higher rates and fees. Loan officers have years of experience in banking and finances, in general, so you can rest assured that you’ll get the best rates.

Although banks are not inherently bad, they might prove to be an actual impediment in your way. In contrast with the brokers, banks always look at your credit score. They are not that eager to lend money to people who have a bad credit score.

Another disadvantage is that when you work with a bank, you will be given only the loans that the particular bank is offering. On the other hand, a broker can have access to a wide variety of lenders and loans.

Which One Is Best?

Both have their advantages and disadvantages. If you have bad credit or you want a wider array of options, a mortgage broker is a perfect choice. If you have good credit and the offers of the financial institution would suffice, a bank would do as well.

In other words, the verdict on mortgage broker vs. banks depends on your needs, the cleanliness of your credit and the deal you are trying to get.

If you still have questions, read more about non-bank lenders HERE.