If you’re in desperate need of money, where do you go? Would you attempt the modern path and file to get a bank loan or would you go old school and seek out private money lenders? There are pros and cons to every one. Certainly, a great deal of Singaporeans, particularly the older and more conventional ones would like to go off the books. Some don’t understand the notion of banks and prefer to do it how they have always known how to do it. That old adage, “It is tough to teach an old dog new tricks.”
To clarify and distinguish private money lenders from the way they are typically portrayed in the media, Singapore retains money lenders liable for their activities, so that they won’t go intimidating any of the debtors into paying. They’re considered businessmen that are expected to conduct their affairs within the custom of the country’s laws. In the event of late payments, the most they could do is send their debtors letters, which is not any different from what banks would do.
Unlike banks however, private money lenders are great once you need to get a loan quickly, and you do not want to be bothered by long procedures. The discretion is solely the creditor or the team that he works with. In contrast, banks need a lengthy process, including filing a series documents demonstrating that you are able to pay the debt. Sometimes, you are even required to have security. The
The way a lender will evaluate your credit is much less forgiving than a money lender will. The procedure alone is dull. The cause of that is bank loans tend to be higher than what you could loan from private lenders. If you are looking to get a car or a new house, loaning from the lender is the best thing to do.