When Should You Consider Private Lending In Canada

Apart from banks and other traditional lending institutions, private lending is coming out strongly as one of the best options for securing funds when faced with a myriad of situations. With the advent of the internet as well as the growth of P2P lending sites, private lending in Canada is now becoming a preferred mode for most of the people due to the various conveniences it has over banks and other chartered financial institutions. But when should you really consider going for the private loans?

When you need urgent financing

One of the times when people prefer private lending is when they are in urgent need of financing. To secure a loan from the regular lending institutions, you will have to submit some paperwork and wait for a few weeks for the loan to be processed and approved. This can be very inconveniencing when you are in urgent need of financing. With private lending, however, the processing is very first and you may have to wait just for a couple of days before you get the cash. In some instances, you can get approved and have the money within 24 hours.

When you have poor credit rating

The other time you will find private lending to be ideal is when you have a poor credit rating. Naturally, most banks and other traditional lending institutions will not want to look towards your direction if you need funding and they don’t like the numbers they are seeing in your credit report. But this is never the case with private lenders. As a matter of fact, there are a number of peer-to-peer lending sites where you can have access to large pool of private lenders willing to look towards your direction irrespective of what the numbers on your credit report is saying.

When you are self employed

It is not always a walk in the park for the self employed individuals to access bank loans. Most of these guys usually find it difficult to meet the stringent requirements of the bank before they can be approved for loans. But thanks to private lenders, the self employed now have an avenue of accessing funding from a plethora of private lenders, so long as they meet some minimal requirements.