Social lending has taken the internet by storm for good reason. In the past, most lending was done by banks in a process that took forever, and a rigorous approval process and fees that made your eyes water. Now, the option of borrowing private money has changed all that. Peer-to-peer lending, or social lending, has made it so that individuals or institutions can lend money to borrowers without much hustle or hassle.
Here are some advantages a borrower can look forward to:
- The approval process is not as long or as difficult. Using available tools, lenders will have access to your credit scores but you will find that some will be happy to lend you money even if your credit is not too good.
- A lot of the fees charged by traditional lenders are eliminated in the social lending space. Fees such as processing fees or applications fees may not necessarily be applied at all.
- Time savings when it comes to borrowing private money is an absolute plus! It is sometimes even possible to get the money within 24 hrs.
- Since you are dealing with an organization or an individual directly you are able to discuss the lending rates and may even find that they are kind enough to give you a lower rate than you had expected.
If you are in search of a loan for your real estate investment, social lending may be the social you are looking for.