Private Lenders

Private Lenders vs Banks – Who To Choose?

Choosing the right lender to suit your borrowing needs isn’t always a straightforward decision. Both come with their pros and cons that depend heavily on your individual circumstances. When it comes to private lenders vs banks, you need to do your research and understand what each one offers before making a decision. Here is everything you need to know when it comes to private lenders vs banks.

Private Lenders vs Banks

What is the difference when it comes to private lenders vs banks?

Private lenders don’t hold a banking license. They are typically referred to as non-bank lenders and are known for being more flexible than banks with their lending terms. They are more likely to offer a loan to those who have been turned down from a bank, and generally consider a borrower’s history.

It’s important to note that contrary to popular belief, private lenders have to abide by the same laws, regulations and rules as banks. This means when you are choosing between private lender vs bank, you are protected in both scenarios.

Banks on the other hand are also known as traditional lenders. They tend to be the go-to for most people and are considered the more reliable of the two. Of course, this isn’t necessarily true, knowing that all lenders are held to the same regulations.

The loan process is generally fairly straight forward, but it does rely on a lot of conditions and doesn’t offer nearly as much flexibility as a private lender. They quite often turn borrowers down based on their credit score and don’t consider their personal situation in the process of application. Their rules are a lot more rigid.

Private Lenders vs Banks: Pros and Cons

When looking at private lenders vs banks, it’s important to consider the pros and cons of each. 

Private lenders


  • They offer competitive rates and more convenient loan offers.
  • Often they come with low setup costs.
  • The criteria are more flexible. If you are in a position of bad credit, then a private lender could be the right option for you.
  • They consider your personal needs.
  • Private lenders often provide a better, more personal customer service.


  • You need to do your homework: there are a lot of private lenders out there that aren’t trustworthy. You need to shop around and make sure you make the right choice.
  • Private lenders tend to be more vulnerable to changing economic conditions. This can make them a little less stable if a crisis hits.



  • Bank loans often come with a lower interest rate.
  • Banks are much more stable should an economic crisis arise.


  • They generally have less flexibility when offering a loan.
  • Banks also have stiff regulations and rely heavily on your credit score.

So, which one is better when it comes to private lenders vs banks? Ultimately, it comes down to you and your individual circumstances. It also depends on what type of loan you are taking out. From mortgages through to personal loans.

Taking Out A Loan

The loan process is quite similar between private lenders and banks:

  • All applications made will require supporting documents. 
  • There will be qualification guidelines that you can read ahead of applying.
  • You can enter into a negotiation with the lender.
  • Loan contracts are drawn up.
private lenders

Low Credit Score

One of the main differences between banks and private lenders is the impact your credit score has on whether or not you can take out a loan. A low credit score doesn’t make you a bad borrower. Life is unexpected and bills can crop up all the time, from finding yourself in a car accident to hail damaging your car. There are some things that are simply out of your control.

The difference is, a bank won’t consider these circumstances. They will see a number and make a decision based on this. On the other hand, private lenders have a lot more flexibility. They will consider your individual circumstances and can tailor a loan to suit your needs. This presents a lot more freedom when taking out a loan.

Your Loan

At the end of the day, both banks and private lenders come with their advantages and disadvantages. If you find yourself in a position of bad credit and unable to take out a bank loan, then the flexibility of a private lender could be well worth it. They will look at your individual circumstances and tailor a loan to your needs. It opens up more avenues when it comes to taking out a loan and offers a more personalised experience.

If you are looking to take out a loan, then speak to the experts at the Australian Lending Centre. We are here to find the right loan for you.

Private Lenders

How To Get A Loan After The Bank Said No

It’s a familiar story: you want to take out a loan so you approach your trustworthy, reliable, traditional bank for a helping hand. You’ve been planning a big overseas trip with the family. You want to finally carry out those renovations on the home. You want to buy your dream home. No matter your reason… you are shocked to find the bank said no. This can be deflating to say the least.

At this point, many people give up and throw the towel in. Not many consider whether it is possible to get a loan after the bank said no. But it is possible. If you are willing to test out non-traditional lenders you will have much more freedom when it comes to taking out a loan. With a little research, you can head on the trip, do those renovations or purchase your dream home. Here’s how!

Why The Bank Said No

Not everyone fits the same mould when it comes to taking out a loan. Yet this is exactly what traditional lenders are wanting you to do. All traditional lenders, such as banks, are looking for the same thing:

If you fall in one or all of these areas, then you are likely to find that the bank said no to you. Don’t worry, you aren’t alone. As disheartening as it can be to hear those words, it doesn’t need to mean the end of your dream.

Your first option is to consider whether you can meet the bank’s requirements. This may mean you need to spend the time working on and raising your credit score, or even changing jobs to ensure you have a steady paycheck coming in week after week. This may all seem simple enough, but it requires huge lifestyle changes that may not be an option for you.

The great news is also a way to take out a loan without their help. The second option is to step away from the norm and consider non-bank lenders.

bank said no

Non-Traditional Lenders

As the name suggests, a non-bank lender is an institution, other than a bank or credit union that offers loans to its customers. These lenders don’t hold a banking license but are highly regulated by the Consumer Credit Code and the Australian Securities and Investments Commission (ASIC). When the bank said no, they more often than not will say yes.

There are many benefits that come with choosing a non-bank lender, most-importantly their ability to be flexible. Non-bank lenders have the ability to be flexible on their rates and who they offer loans to. It is this reason they are a perfect choice after the bank said no.

You also could end up with a much better deal than you would have with a bank. Banks are very strict in their criteria and don’t take the time to consider the personal history of each loan application. A non-bank lender will get to know you and your circumstances and will be able to offer the best advice on what sort of loan you need. They tend to be much more helpful than banks when it comes to meeting your individual needs.

how to get a loan

How To Get A Loan After The Bank Said No

As disheartening as it can be to be told no, there are options available to you. If you are prepared to walk down the path of a non-traditional lender, you may just find it was a blessing in disguise. Here’s how to go about taking out a loan:

  1. Shop around: Do your research and shop around for a non-bank lender you can trust. It is always a good idea to check out the reviews and what other people have to say about the business.
  2. Consider what type of loan works for you: Non-bank lenders will likely offer a variety of different loans depending on your needs. It’s important to choose the right one for you and ensure you are able to make the repayments on time.
  3. Consider the interest: One downside to going with a non-bank lender can be their interest rates. Compare different interest rates on offer and find the best one.
  4. Lock it in: Once you are ready, go ahead and take out your loan!

Get Your Non-Bank Loan Today

Australian Lending Centre is a non-bank lender that has your best interests at heart. We have more finance options than the average bank to save you time, money and unnecessary credit enquiries. Our specialists can guide you through the entire process from start to finish, to ensure you have the right documentation on hand to take out your loan.

If the bank said no, then give Australian Lending Centre a call today and start getting excited about that dream holiday or new car that you have had your eyes on.

Personal Loans Business Loans Financial Planning Short Term Loans

Top Methods of Getting Personal Loans from Private Lenders

Every individual or family may need personal loans from time to time. It may be for various reasons: the car broke down, the house needs some renovations, or their daughter is planning to get married in Spring. Regardless of the reason, money is needed as fast as possible.

The problem is that options such as credit card debt or bank loans aren’t always available. Once more, reasons may vary. It may be because you built up too much bad credit or you have no collateral to attach to the loan.

In these cases, a personal loan from a private lender may look like a very good option. They are fast, easy to access, and may overall improve your financial situation. And this article will tell you the top methods of getting a personal loan from a private lender.

#1: Figure Out If a Private Personal Loan is Your Best Option

Before going for personal loans, you need to learn the difference between public lenders and private ones. For one, private lenders aren’t banks, credit unions or financial institutions. They are simply individuals (or companies) with no attachments to a certain institution that lends money to other people. Those who receive a loan from a private lender usually have a certain relationship based on trust.

A personal loan taken from a private lender is different from other types of private loans, in the sense that you don’t need to specify why you need a loan. On the other hand, public lenders will categorise the loan based on your needs: student loans, car loans, mortgage loans, etc.

Keep in mind that personal loans are very different from payday loans. A payday loan will have to be paid very fast – usually within the first two weeks – and they carry a very high interest rate. A private personal loan will have a longer time frame and a lower interest rate – but will still be higher than the one offered by a bank.

There are also risks to personal loans from private lenders, such as shorter payback periods or costly fees. Most will require collateral to secure the loan. If by any chance, you find yourself unable to pay the loan, the lender will be entitled to sell that property to get his money back.

#2: Consider the Alternatives

The most important part of getting a personal loan from a private lender is knowing that there are other options aside from them. If the return of your purchase makes your loan worthwhile, then getting personal loans from a private lender might not be such a bad idea.

Still, before going for a personal loan, you may want to check whether you can use cash to fund that purchase or not (or at least some of it). This may reduce the costs in interest, resulting in a much smaller loan.

You may also want to evaluate all your alternatives. Consider opening a line of credit, or getting a public student loan. If the interest rate is more beneficial for you, there’s no reason for you to take out personal loans. Only do so once you’ve burned out all the other options and know for sure this is your best opportunity.

#3: Access Your Options for Personal Loans

When opting for personal loans from a private lender, you need to do your research on the options that they provide. You may want to focus on lenders that are accredited or have been approved by the government.

You can go for individual lenders or companies. Browse through your options, and see which one is a better way to start. After learning of all the options, you may settle on the one you believe is more convenient for you.

You should also try contacting your family, friends, or business acquaintances. They may be able to offer you a personal loan quickly, with a smaller interest rate. Still, you may want to make sure that there is also a written agreement next to your verbal one. And you should keep in mind that failure to repay this loan can result in damaging your relationship with your lender.

Once you have explored all of your options, collect all the documentation that you need. You need to appear as creditworthy as you can. Show your income sources, your savings, or any physical assets that you use to secure your debt.

Final Thoughts

Personal loans from private lenders can be tricky to deal with – but they are also convenient if bank loans are not an option for you. All you need to do is research your options and come up with a convenient provider. Contact us for a free assessment that has no effect on your credit file and get one step closer to a suitable personal loan.

Business Loans

Small Business Financing: Should You Consider Private Lenders?

I think we can all agree that in recent years, small business financing with private lenders has picked up a lot of ground against their more well-established peers, like banks and other institutions. This is because they are a lot handier than the latter.

Moreover, one might not need to provide as much documentation to them. But anyway, the question is: should you consider private lenders as a source of financing for your small business?

You be the judge after we outline some of the pros and the cons.

Why Private Lenders Are a Great Alternative

  • If you’ve ever needed financing before and sought it from some alternative lenders, you were probably taken aback by the fact that most of them wanted some control over your business in order to provide the financing.

There are very few business owners ready to put up with that. Lenders that are not affiliated with any bank won’t need to become members of your business. The process, however, is still the same. Lenders will weigh in the decision for some time, in order to see whether or not your business is worthy of financing or not.

  • Private lenders provide better repayment plans. You’ll discover that these lenders are actually interested in giving you the best possible terms. They’ll tailor a repayment plan that works for both you and them. So, apart from the funding you need, you’ll also be given fantastic terms and possibly counselling.
  • They aren’t afraid of taking risks. In fact, this is what being a private lender is about. A lender can do as much diligence as he pleases, but he still cannot be 100% sure that his investment is profitable. Banks – and you probably know this by now – are not very keen on taking risks. A private lender thrives on that.
  • They actually take a look at your business plan. If the investment is still seen as a risk, a bank representative will pack your plan up and show you the door. A private lender, will give you some advice on how you can better it.

Disadvantages Working with Private Lenders

To be fair, these “disadvantages” are the consequence of people badmouthing the private lending domain. For some reason, many think that this isn’t legal and that all private lenders are dabbed in loansharking.

This couldn’t be farther from the truth. Even though working with a private lender is highly advisable if you have a small business, this partnership can come as a package deal with some downsides, too.

For small business financing, these disadvantages are:

  • Higher interest rates (not always, but generally)
  • You may not get some of the tax deductions you’d get from “conventional” lenders

One thing is sure: getting loans from a private lender is so much easier than getting them from banks. This is the main reason why many business owners today choose to go with lenders in the private sector.

The process is simpler and the requirements are not as draconian as they are with the banks. All in all, it makes more financial sense to borrow money from someone who is actually trying to help you by creating repayment plans to fit your schedule and sales-cycle.

The “Third Party Circle” of Private Lenders for small business financing

The Third Party Circle of Private Lenders is comprised of lenders you have no affiliation to because you don’t even know them, to begin with. The First and Second Circles are comprised of your family and friends and their friends.

Yes, your family can be taken as a private lender. You’ll still get the money, and it will be easier to pay it back knowing that they won’t change terms or anything.

The lenders in the Third Party Circle are investors you can find on the market. All you have to do is look for them. You can do this on the Internet. Most business owners decide to borrow money from lenders in the TPC.

Small business financing last thoughts

Taking a loan for your small business from a private lender is highly advisable. As you’ve seen, there are many perks waiting for you. In case you feel like you don’t know enough yet about this topic, please contact us on 1300 138 188 for a free consultation today.

You’ll be in good hands, as our team of professionals will pick up your enquiry and will provide you with valuable free consultation. With all this being said, we hope you make the right choice.

A private lender should be, without a doubt, your go-to source of financing for your business, no matter if it’s small or already a titan on the market.

News Financial Planning Personal Loans

Private Lenders: An Alternative Source of Financing

Whenever Aussies need a loan to finance a new car or house they go to the bank. Still, they seem to forget that there are also alternative sources of financing in the form of private lending. But what are private lenders and why should someone consider these alternative sources of financing when there are plenty of banks?

Sometimes, traditional banks don’t always approve your loan application due to many different reasons, so people have to look for alternative sources. With a private lender, maybe you will finally get that new car you have always wanted.

What Are Private Lenders?

They can be either an organisation or a private individual. Unlike traditional funding sources, like banks, private lenders don’t have traditional qualifying systems, meaning that getting access to a loan is much easier.

However, because of its “different” nature of funding, lenders come with higher risks for both the borrower and the lender.

What Are the Benefits?

To begin with, private lenders can easily approve your request for a loan. In other words, if you have bad credit or are self-employed or cannot provide proof of your income, a private lender may be more accessible when it comes to requirements. So, no matter your income and your credit score, a private lender will get you the loan you need.

Another reason for applying for private funding is due to the straightforward process they have. Unlike traditional lenders, the private ones will accept your request very fast. Not only that, but your loan could be available right after your application is approved. This can bring a lot of advantages if you are on a tight schedule.


Drawbacks of Using Private Lenders

It almost sounds too good to be true, but private lenders do come with a set of drawbacks that can make them inaccessible to some Aussies.

The first thing to know is that their rates are typically higher than those of traditional lenders. This is how they compensate for the increased risk and they will have high interest rates for those with bad credit.

Some lenders may feature high fees, from the start until the finish of the loan term. In any case, be sure that you know what you are paying for.

Another drawback is that some loans are offered for shorter terms in comparison to what traditional lenders offer. This happens especially when it comes to mortgages. When conventional mortgages have a twenty-five to thirty year terms, private lenders offer smaller mortgages that just fill the gap until securing more traditional finance.

The private mortgages can also be used to cover needs like the construction of a house. They can also cover for the period between purchasing a house and selling one. The term on these mortgages is one or two years, which means that you will have to move fast to pay the loan back.

Another thing you should know about private lenders and their services is that some of them do not offer the same features as traditional lenders do. In other words, some loans may lack features such as redraw facilities or offset accounts. So, if you were hoping for these types of features, you might have a problem.

How Can Private Lenders Help Me?

Private lenders can offer you a lot of options when it comes to loans. Here are a couple of them:

  • Caveat loans are fast-settling loans secured against a property. These loans are short, last sixty to ninety days and settle very quickly.
  • Bad credit loans are the ones you need if you have a low credit score. Be careful though; these loans come with high interest rates, so use the money wisely and make sure you pay back the loan fast.
  • Bridging loans can be offered by private lenders and can be used by the customer to build or purchase a new home before the sale of their old home. These loans have a term of twelve months, and they are paid back when the old property is sold, making them quite useful in the long run.
  • Second mortgages are also offered by private lenders. These loans are available for those who already have a mortgage on a property who are in need of extra funds for multiple reasons. Depending on the lender and the loan terms, these loans could have high interest rates and extra fees. With all these factors in mind, any client should think twice before applying for this kind of service. So be very careful if you do.


Private lenders are here to stay, whether you like it or not. They have a lot of advantages in comparison to traditional lending systems, but they also have some drawbacks. At Australian Lending Centre, we offer second mortgages at competitive rates and flexible repayment terms that can be catered to your specific needs. Contact us today for a free assessment via our enquiry form now!

News Personal Loans

The Pros and Cons of Dealing with Private Lenders

Selecting the right lender

Selecting the right lender isn’t an easy task. It might seem tempting to think that all are reliable, properly funded and legit. But can you be sure of that? There are pros and cons of private lenders that you should consider before applying for a loan.

There are some things you would expect of a reliable lender that should give you the confidence and reassurance that you’re collaborating with a responsible organisation. Apart from supplying a variety of financial offers, a lender should be entirely upfront and transparent with fees and rates, while providing excellent services.

Unfortunately, most lenders’ marketing strategies focus almost entirely on advertising the most convenient interest rates. That’s why many Aussies look exclusively for the best rate alone, overlooking other aspects. Still, note that the lender that supplies the cheapest rate available doesn’t necessarily facilitate the best overall option for your needs.

As a consumer, you should look beyond a lender’s marketing strategy and choose a lender that considers your needs and has convenient loan offers.

On that note, today we will talk about private lenders vs. banks. Which one is better? What are the pros and cons of choosing private lenders over a bank? This article aims at answering these questions.

Introducing Private Lenders

Who are private lenders and what can they offer you? Private lenders do not hold a banking license. They are not a credit union, nor are they a bank.

The great number of private lenders out there competing against one another could make it challenging for you to find the right one. You shouldn’t make a hasty decision, as alluring as an offer could be, at first glance. This applies when it comes to both banks and private lenders.

The Pros of Private Lenders

  • They provide very competitive rates. In comparison with traditional banks, they facilitate more convenient loan offers.
  • Typically, they have low ongoing and setup costs.
  • Lending criteria are less rigid. Hence, if your credit rating isn’t the best, a private lender might give you a better offer than a traditional bank.
  • They embrace flexibility in the sense that they aim at meeting your specific requirements and needs.
  • Expect a more personalised customer support service. Private lenders also deliver a large niche of loan offers to meet various circumstances. Banks offer slow and often impersonal service.

The Cons of Private Lenders

Non-bank lenders tend to be more vulnerable to altering economic conditions. For instance, when the Global Financial Crisis hit, a range of lenders had to withdraw from the financial market.

Apart from that, some private lenders have a limited service offer. However, that depends on each lender, which is why it’s always best to do your homework before you sign a deal.

Are Private Lenders Reliable?

Private lenders and banks must abide by the same laws, regulations, and rules.  For example, Private Lenders must abide by the Consumer Credit Code. This code governs all credit transactions that take place in Australia.

The code implies that credit providers including banks, private lenders, credit unions, finance companies, and businesses have an obligation to communicate both your rights and responsibilities when you take out a loan of any kind.

What is more, credit providers must transparently disclose relevant information regarding your agreement in a detailed, written contract. The contract should state information about fees, commissions, interest rates, and others that, in the past, have been omitted.

In the same respect, the Australian Securities and Investment Commission requires lenders to be transparent about rates and fees.

When you select a lender, it’s comforting to know that you are protected when it comes to making a significant financial transaction.

A lender should be entirely upfront regarding its fees. If you feel that you cannot trust your lender, then this raises a big question mark.

The Bottom Line

Choosing a private lender over a bank has its advantages and disadvantages. Since you’re armed with the information you needed to make the right decision, now it’s up to you to weigh the elements presented in this article.

If you’re unsure of the lender you should choose, contact us for a free consultation and about what we can offer you. We are entirely transparent regarding our rates and fees, as honest communication is the key to a fruitful collaboration. Apart from carefully selecting your lender, ensure that you don’t make a hasty decision when it comes to the terms of your loan.


How To Choose The Best Private Funding (Or Private Lender)

How to choose the best private funding or private lender is not a piece of cake. There is no such thing as one-creditor fits all when it comes to loan options. But, asking the right questions can help you find the best financing company with loan products that best fit your credit situation.

Is private funding the best option for me?

Understand the difference between bank and nonbank lenders. Private are non-institutional lenders lending money to others.

What is the difference between private funding from other types of loans?

The private lender often asks where you will spend the money on, while public lenders such as banks and credit unions categorized loans according to their use. Most of the loans are either secured by a deed of trust or a note.

Private money lenders are there when banks turn down your applications because of poor credit rating, insufficient income or paperwork.  So, while you try to lock up deals for an investment, or while you wait for your next income, private lending can help you get through.

What are the benefits of getting private funding?

If you have a poor credit score, you may find it difficult to obtain a traditional bank loan. But, private lenders like Australian Lending Centre can offer you the following benefits:

  • Quick and easy loan approval for borrowers with  poor credit score
  • More affordable interest rates than credit cards
  • Flexible loan terms

Special caution

Some private lenders make up for the risk of not being repaid by high-risk borrowers with higher interest rates. Some of them issue loans with steep penalties. So, if you pay late or if you choose to prepay your loan, the overall cost of the loan may be more expensive than traditional loans from banks.

Choose a private lender that helps you build your credit rating

If you have a history of late payments on car financing or you always spend over your credit card limits, you’re most likely to have a low credit report rating. As a result, you’ll find it hard to get car financing with lower interest rates and it would become virtually impossible to get a new credit card. Aside from the fact that you will have to pay around 15 per cent higher than the interest rates for the same loan offered to people with excellent credit, many private lenders may also turn down your loan application.

A bad credit report limits your chances of getting private funding. Private lenders are cautious of borrowers with low credit scores and records that indicate poor financial management. But, it doesn’t have to stay that way. There are ways to boost your credit score and fix its negative effects on almost every aspect of your life. In order to achieve this, it is important to choose the right lender who will give you the best private funding.

Australian Lending Centre offers several loan products that can help you gain control of your finances and build your credit score. Their programs are designed to help you get back on your financial track while they help you obtain the money you need for your emergent needs, at a very low cost.

Apply for private funding today!


Beware of Loan Sharks with Unconventional Loan Collaterals

According to Southern Metropolis Daily, loan sharks found a new and unconventional way to guarantee for loans. They ask female university students for nude photos in order to get a loan.

Loan sharks and their unconventional loan collaterals

What is the newest collateral for a loan? Naked pictures of students. More and more loan sharks based in China ask cash-strapped female students to send them nude photos of themselves, along with a copy of their ID card, as unconventional loan collateral.

Students are warned that if they do not make their payments on time, the pictures will be published.

According to the mentioned newspaper, a young female student borrowed first only 500 Yuan, which is the equivalent of $100 AUD. She took the loan from an online lender, and the interest rate was 30 percent per week. Then, being unable to pay the first loan on time, she took a new one and then a new one, and so on. Soon, she had a debt of 55,000 Yuan or $11,300 AUD. At that moment, her lender demanded a naked photo of her, as a sort of collateral for a new loan.

The Chinese student told the newspaper that she was not the only one in this situation. In fact, she knows many female classmates who were asked to send nude photos as a guarantee for their loans, just that they were afraid to speak up.

A reporter who posed as a potential client was able to gain enough evidence of the unconventional collaterals demanded by loan sharks. Besides the nude pictures, these private lenders also ask for various personal information, such as ID numbers, phone numbers, parent’s name, home address, student registration information, and even the roommates’ contact info. The report said that if you can’t make your payment on time, you are threatened that all of these details will be made public.

Pay attention to your safety and confidentiality

Experts advise Aussies in need of a loan to give special attention to the lender they choose. Loan sharks are very common nowadays, and their slyness can be extremely dangerous, especially for those who have little knowledge about the financial field.

If you don’t figure out things in time, you may get in real trouble, from paying exorbitant amounts of money to being blackmailed. Also, you may come across identity thief.

A safe way to borrow money is to opt only for reputable institutions, such as big banks or trusted non-bank lenders. When it comes to your safety and confidentiality, it is better not to take any risks.