Reasons Private Moneylenders Are Still Better Than P2P 

Meta Description: Find out why private moneylenders will work better than peer-to-peer (P2P) lending for professionals. Reap the benefits and make informed financial decisions.

Are you caught in a dilemma between the private moneylender and the peer-to-peer (P2P) lending marketplace for your borrowing needs? If you are, then here are the reasons why a licensed money lender online might be a better option. We will explore the advantages of private moneylenders. By the end of reading this article, you will be better informed to make better decisions that suit your financial needs and lifestyle. 

Faster Access to Funds

The main advantage of borrowing from private money lenders is that you can get the proceeds faster compared to P2P loans platforms. When one is in dire financial strain, waiting for the funding of a P2P loan, which involves more than one investor, is painfully slow and torturous. Since private moneylenders have funds readily at their disposal, they can process such loans much faster. This implies that you can easily access the money you need with urgency to respond to critical financial needs without unnecessary delays. 

Flexible Loan Terms

Private moneylenders will often have more flexible terms compared to P2P platforms. This, to the young professionals, will mean a lot since these income streams and financial obligations may keep changing. 

A private moneylender may provide you with options to negotiate repayment terms that fit your particular situation. If they believe you will be paying promptly and faithfully, you can be given a longer tenure or lower interest rates. This makes it your best option to pull through with the most success in managing your finances effectively. 

Personalized Service

Another major advantage of private moneylenders is that they offer a personalized service. However, unlike P2P platforms — which mostly take place online and can be impersonal — this one allows close contact with private moneylenders. This would mean having meetings with them and explaining your financial situation so that you can be advised according to your current financial situation. A more personal approach will also be helpful in case there are hiccups along the way. Indeed, direct communication with the lender can be helpful in certain cases.

Less Stringent Credit Requirements

In case your credit history falls below the perfect score, then your needs can be taken care of by private moneylenders. Many P2P lending platforms have high prerequisites in terms of credit scores, which means many borrowers aren’t qualified. On the other hand, private moneylenders usually have more lenient credit criteria and consider other things, for example, your income and employment stability. Because of this, you have a higher chance of getting the approval and can secure the funds you need even if your credit score is not ideal. 

Clear and Transparent Fees

It is also vital that one understands all the costs they are incurring on borrowing. Private moneylenders often have a much clearer and transparent fee structure compared to P2P platforms. At times, lending directly to peers can involve hidden charges or fees that are not outright, something that might prove expensive with time in your financial planning. 

Nonetheless, the fees are mostly specified upfront by most private moneylenders, making it clear to you what you’re getting into. Such transparency could help you make better decisions while staying clear of unsuspecting costs.

Established Reputation and Trust

Trust is very important when it comes to financial institutions, and knowing that your lender has a good reputation can bring further peace of mind. And one way to build this trust is through years of experience and customer confidence. That is why private moneylenders that have been in the business for years, such as Goldstar Credit, are considered as such.

On the other hand, P2P lending is relatively recent and may present a few atypical solutions, it lacks this same history that so many private money lenders can now count on. This doesn’t mean that P2P is not trustworthy. It simply not established enough yet. 

Conclusion

Choosing between private moneylenders and P2P lenders can be tricky. However, the former offers faster access to proceeds, flexible terms, personalized service, less stringent credit requirements, clear fees, and a sense of trustworthiness. 

If you’ve made up your mind and decided to go with private lenders, the next question is, which one? Take some time to research and compare different lenders. Consider what fits best with your financial needs right now. With these tips, you can confidently choose the lending option and lender that will help you reach your financial goals.