Questions to Ask Alternative Money Lenders

Private money lenders are an option for many kiwis looking to borrow funds without going through traditional banks and credit unions. Conventional money lenders can be notoriously difficult to deal with, even when trying to acquire a small loan. Alternative money lenders offer another option, but before you deal with them, it is important to ask some important questions.

Do they consider clients with bad credit history?

A lot of people turn to alternative money lenders when they’ve been refused loan requests from traditional banking organisations. If you approach a bank, building society, or credit union, with bad credit, you’ll find it difficult to secure a loan. If you’ve missed a payment on a previous loan, a bank or credit union won’t entertain your request. On the other hand, private money lenders will assess your background considering a range of information, you won’t have your application dismissed immediately.

Can I clear up my loan repayments early?

Private money lenders operate similar to regular banks, if you’ve taken out a loan and you wish to make an early repayment, they should have no issues. Before you agree any terms, ask whether it is possible to pay off your loan early just to clarify the situation. It is important to know whether you’ll incur any fees if you pay early. If the company has issues, you can save money on interest rates if you finish repayments sooner than scheduled.

How long does the whole process take?

Alternative money lenders pride themselves on offering a quick, efficient service, something that most traditional banks can’t. Everything is done online, so once your application is submitted it can be processed within an hour, if they require additional information you can easily send documents online if requested. If you are applying for online loans in NZ, some companies even let you sign electronically, eliminating cumbersome paperwork.

When will I receive the money?

Most alternative money lenders can have the money in your account the same day if everything checks out. Once your application is approved, they can electronically wire money directly into whatever account you desire, it should take no longer than 48 hours to hit your bank. Because the process is so quick, you can have access to funds in a matter of hours.

What kind of loans do you offer?

Some alternative money lenders specialise in small business loans, while others cover a range of different options. Most won’t have issues if you are requesting money for a new boat, car, or wedding. Once everything is good and they approve your loan request, they won’t ask any questions about why you need the money as long as you make repayments.

Before applying for an online loan from an alternative money lender, it is important to do some research on the subject. You should only borrow from a reputable organisation to ensure the whole process goes as smooth as possible. Make a list of questions and speak to a company representative before you sign any contracts.

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