Just ten years ago, the finance market was in turmoil as the recession took hold and the high street banks started to entrench themselves in order to survive. It became increasingly difficult to borrow money for some time as the downturn took its course, but the high street banks never seemed to recover their appetite as everything began to improve. In their place, however, individual investors have certainly risen to the occasion and by taking advantage of technology and instant connection, can now present a great solution for those looking for a non-traditional personal loan.
In recent times, peer-to-peer finance has taken an exciting shift away from the conventional options and allows an individual to access lenders who can often provide better rates than would otherwise have been available on the high street. There are an increasing number of solutions in the marketplace, but you do need to understand the ins and outs and work with the best lender possible for your circumstances. To help you do that, you need to work with an independent and impartial broker, who has taken the time to understand the various peer-to-peer finance networks and can advise you accordingly.
Peer-to-peer lenders may be individual investors or institutions (such as a foundation or pension scheme) and they will typically join a platform that provides the link between lenders and investors. Modern technology enables all these parties to interact very efficiently and quite quickly in order to provide the money that the borrower needs, as soon as is practical.
Sometimes an applicant may have been refused by a traditional bank and often due to the complex algorithms employed by those institutions. However, P2P online platforms are far nimbler. Through more up-to-date analytics they can often put forward lower interest rates and consider a broader cross-section of applicants.
This can be quite a confusing environment for the uninitiated and that’s where Loans Warehouse comes in. It’s a good idea to work with an independent broker who understands the market and can match your needs with the right P2P lending platform. Loans Warehouse will help you narrow down your preferred option based on your requirements. We will assist in gathering together all the relevant information and documentation that you may need and then very importantly we will explain the benefits of one product over another.
Once you have been matched, have made the application and received the approval, the funds will typically be deposited directly into your bank shortly after. Remember, each P2P platform has a different set of rules and approval criteria, so we will be checking several on your behalf in order to get the best deal.
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Your full financial situation and requirements need to be considered prior to any offer and acceptance of a loan product.