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5 Reasons to Request a Quick Loan from a Private Lender

5 Reasons to Request a Quick Loan from a Private Lender
August 13, 2019 mynextpay

5 Reasons to Request a Quick Loan from a Private Lender

Traditional lending institutions generally offer few solutions to people who need to deal with an urgent need for money, especially when these are borrowers with low credit scores. In these types of situations, it’s usually preferable to look for another option to obtain a loan quickly. Here are 5 reasons to turn to a private lender in order to get a quick loan.

Ease of access

Unlike conventional banks, which generally require an appointment and an unbelievable amount of documents and evidence to analyze a loan application, private lenders require very few supporting documents to grant or refuse to approve a loan. In addition, they don’t only approve employees working full-time, since they regularly finance other profiles that are usually denied by traditional banking institutions, such as self-employed workers, students, retirees, the unemployed, and people on maternity or parental leave, on a work stoppage, on sick leave, or on social assistance, as well as CSST, disability program, or pension plan beneficiaries.

Fast release of funds

With private lenders, it’s not only the analysis of the file that’s fast, because once the application is approved, the funds are generally released in under 24 business hours. Particularly in the case of a quick loan, the lender sometimes even makes a direct deposit to the borrower’s bank account in just fifteen minutes—a dexterity incomparable with the days or weeks that it takes conventional banks to deposit the funds and quite helpful when the loan is used to pay a hospital or car repair bill, make a mortgage payment, or pay a large energy bill to avoid a cut-off.

The no credit check loan

Private lenders are well aware that among the people who file quick loan applications are borrowers who have bad credit scores. Some offer no credit check loans—in other words, they ignore the applicant’s credit rating when making their decision. They look instead at the income earned and the existing debt and carefully examine the bank statements to determine if the borrower will be able to repay this new loan. If they determine that the income is sufficient and that the requested loan won’t place the borrower in a situation of over-indebtedness, and if they don’t see microloans or debts over the last three months, they usually grant the loan.

Simplified renewal

If no incident jeopardizes the repayment of the initial loan, it’s very easy to request a renewal: a simple request email is usually enough to obtain one.

No supporting documents to provide

As private lenders don’t require the presentation of supporting documents, you can use the borrowed money as you please, whether it’s to pay an urgent bill or even to treat yourself to a romantic weekend getaway.

In many situations, and particularly in the case of an urgent need for money, turning to a private lender lets you get yourself out of an uncomfortable financial situation. However, you should be careful to only resort to this type of financing in case of emergency: indeed, these quick loans are accompanied by high interest rates and sometimes administrative fees and ultimately wind up being very expensive.