Why Non-Bank Money Lenders Are Your Best Financing Option

Applying for a bank loan nowadays has become almost impossible. Most banks are looking for unicorns with impeccable, long credit histories and not a single instance of missed payments.

Hanging your life on a bank’s decision to give you a loan, often at exorbitant rates, isn’t a great idea. But on the bright side, non-bank, private money lenders are a much better alternative option.

So what are they? And how can you get approved for your loan today?

What this article covers:

What Are Private Money Lenders?

Everybody’s familiar with the “big four” Australian banks. Whether you have an account in Australia and New Zealand Banking Group, Commonwealth Bank, National Australia Bank, or Westpac, you’re getting a variation on a theme.

Applying for a loan in any of them always turns into another hard credit check that ends in a rejection. Both of these things harm your credit score, and you haven’t even missed a single payment!

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That’s where private, non-bank lenders come in. They’re a better alternative to banks, which have a history of unfair loan rejections. They put more factors into consideration, like your current financial situation and how long ago your bad credit was.

Private funding helps you take out loans to finance your personal needs or your business without having to answer a million requirements. Even histories of bad credit or a missing document won’t stand in your way if the private money lender sees your application as fit.

How Are Money Lenders Different from Banks?

There are over 25 million Australians. That means that banks have to deal with millions of clients daily, and in turn, there’s no room for personal care when it comes to loan approval.

Because banks want to minimise the risk of missed payments and defaults, they set the bar so high when it comes to approval requirements. In essence, the bank wants an ideal client that has a perfect credit score and never slips up.

That’s why the bank performs hard credit checks, imposes high-interest rates, and has rigid payment options. For many clients, this doesn’t work well with their financial situation. And for the bank, this results in many, many rejections.

In fact, a bank might reject someone with an average or good credit score based on a past slip that was recorded on their credit file! 

There’s also the practice of offering clients with poor credit loans with exaggerated interests. This often forces them into foreclosure and ends with security repossession, not to mention the long wait time for loan approval resulting from the high demand for the bank’s products. 

On the flip side, non-bank lenders have the time and the resources to look into every application with care. The decision to approve or reject a loan is studied, and the interest rates and payment plans are personalised. That way, you have a higher chance of success.

Depending on the amount of money you’re borrowing, the money lender can only do a soft credit check, which doesn’t negatively affect your credit score. You can also have your loan approved and funds transferred in as little as 24 hours after applying.

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Where’s the Best Place to Get a Loan?

The best place to get a loan is the one that works for your financial situation. If you’ve had luck with traditional bank loans and want to keep using them, that’s great! However, we find that many candidates struggle with the requirements.

There are institutions regulated by the Australian Securities and Investments Commission (ASIC). They follow the Uniform Consumer Credit Code (UCCC), which protects the rights of the client and prevents any predatory lending behaviour.

This also means that loans agencies, like Moneyspot, Lazer Money, and Wallet Wizard, are legally obligated to reject applications that don’t meet their standards. So, if a client wants to borrow beyond their means, the money lender won’t let the application go through.

The Benefits of Borrowing from Private Money Lenders

Choosing to forego the traditional route of bank loans can prove to be a great financial decision. Here are some of the benefits you’ll reap if you decide to borrow from a private lender:

Flexibility With Past Credit History

No one’s above financial hardship. We know that bad times can often lead to bad money decisions, and this can reflect badly on your credit history.

Unlike banks that take the smallest black spot on your credit file as an excuse for rejection, a private money lender looks past that. Past poor or bad credit doesn’t affect your current application for years on end.

money lender

Fair Assessment of Your Application

We look at your spending habits, monthly income, and credit score as part of a bigger picture. Your needs and funding requirements aren’t treated like numbers on a sheet but a personal story.

We promise a fair, unbiased assessment of your application without looking at just the low spots. We understand that many clients rise above financial hardship and find stable income sources, and so can afford to borrow without harsh limitations.

More Funding Options

Banks have limited funding products that only fit cookie-cutter applicants, but the options we have from private lenders are as diverse as our clients. Keep in mind that a bank will always direct you to the products it offers with no regard to how well it fits you.

You can find the right loan for you with a reasonable interest rate and an attainable payment plan from one of our many non-bank lenders.

Personalised Advice from Expert Advisors

Our advisors at Orange Loans care about giving clients the best financial plan for their unique situations. Their vast knowledge, combined with our large database of lenders, can help you find the right resources for your needs.

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Wrap Up

If you’re looking for the best quick loans in Australia, you’re sure to be disheartened by the limited, rigid options of traditional banks. Aside from the long wait times, low approval rates, and hard credit checks, banks are hesitant to serve bad credit clients. 

Maybe it’s time to consider private money lenders as an alternative. With more options for poor and bad credit clients, flexible payment plans, and fair interest rates, you’re bound to find something for yourself.

If you want to apply for private funding, you can contact one of our friendly advisors at Orange Loans to receive professional financial advice today. They’re experts at providing clients with the best plan for their situation while also fulfilling their current financial needs.

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