Throughout years of inte ractions with our customers, one question has remained constant. That is, “what’s a private lender, and are you one?” In addition, most people want to know what makes a private lender loan different from a normal lender, and when should you seek out a private loan. Read on to learn more about this relatively simple concept!
The Basics - What is a Traditional Lender?
A traditional lender is a bank or credit union. These places have lower rates of interest but often have very high standards for what they will accept. This is usually due to regulations and not chosen specifically at the bank. For example, you might have to have a long employment history with a very high credit to get approved for even a small loan.
While they are harder to get, they often have ways in, especially if you are a member of the bank or credit union. In addition, the lower rate of interest can save money if the loan is taken out over a long period of time.
What is a Private Lender?
According to the government, a private lender loan is a cash loan that comes from a company that is looking to make money through lending. However, it’s a bit more complicated than that. In truth, a private lender lends money to the unbankable due to their willingness to take more perceived risk.
A private lender is a company who is not affiliated with a bank or traditional lender. Consequently, private lenders are not as constrained by regulations as traditional lenders are and as a result can lend money to near-prime clients as they see fit. Oftentimes when getting a loan from a private lender, you can expect slightly higher interest rates and fees than traditional lenders due to the higher level of risk when taking on clients with a poor credit history. However, because many private lenders specialize in providing loans to near-prime clients, they are more accessible for emergencies and have approachable customer service.
What is iCASH?
iCASH is a private lender that uses new technology to get you loans at a lower rate with higher approval rates than ever before. In as little as five minutes, you can make an account, apply for a loan, get approved, and have cash on the way. Download the app today to see what we can offer you - get your life back and pay the bills you need.
How Does iCASH Compare to a Private Lender?
The interest rate at a private lender will be higher; however, they won’t turn you down based on credit score alone. Often, private lenders will take you if a normal lender would have turned you down. iCASH functions in a similar fashion, but with a goal of lowering interest rates further and accepting more people than other private Canadian lenders.
It can be easier to get a loan from a private lender unless you are a member of a bank or credit union that offers special loans for members. Finally, banks have a long application time (unlike iCASH,) while private lenders can get your money in as little as one day - if not the same day (just like iCASH.)