Most of the people tend to think that the only organizations which can provide one with a loan or lend money are the banks. However, that seems to be totally wrong as there are many new “sources” of loans- those could be organizations, finance companies and why not a physical person. But when the so called “lender” is a physical person, there are rarely contracts because the agreement is usually oral and it is often based on trust or even friendship.
But let’s get back to the finance companies which specialize in lending money (loans) for people. We are going to pay more attention to them as sources of loans because they really have what to offer you and I am sure that most of you will be astounded when they get some more information about the terms and conditions of some finance companies.
We will first start with the procedure of approving. Usually, it is not much more different from the procedures used by most of the banks. Each company does “mini-research” for each possible client and estimates whether he or she will be able to refund the loan. Some factors which are taken into consideration are the potential client’s incomes, expenses, the kind of job which he/she does and others. Of course, those were just a small part of the factors which are of great significance.
But what will probably impress you most about the finance companies which give loans is the interest. Believe it or not some companies have pre-prepared offers and the interest included is as much as 5%. It sounds extremely good, especially when compared to the banks’ interests of 12-14%. And I can give you a very simple example of pre-prepared offer: a loan of $50.000 could be refunded for at least 3 years. The “borrower” must have good incomes and properties which cost at least $50.000. This way the company will be kind of “insured” that it will not lose the money ($50.000) which was lent.
However, the interest is not the only advantage which the finance companies give their clients over banks and all kinds of bank institutions. As you have probably noticed while reading the “sample-offer”, finance companies are much more flexible which if of great significance for all people. It is great that you are the one who determines how much could be given this month and how much will be given the next month. The only thing which the company aims at is refunding the loan with the interest and it does not matter how much time it will take for that to happen. Well, there are some limits of course otherwise a finance company would have to wait decades until a loan is refunded!