Ever since the great recession occurred, banks have been a little hesitant to extend loans. As a result, non-bank lenders have risen to fill the void left by traditional lending institutions. Banks introduced more stringent measures like credit scores, which you must meet before qualifying for a loan. Many people who qualified before were now left out.
Today non-bank lenders enjoy a bigger share of the loan market. A lot of consumers have switched to them because of their less strict qualifications when compared to banks. Non-bank lenders like A1 Credit can quickly help you with your financial emergency within a very short time.
Below are the top benefits of borrowing from non-bank lenders:
Easier to Qualify for Loans
Banks have to weigh on so many things before they advance loans to their customers. Banks often perceive people with a low or average credit score as being risky borrowers. On top of that, if your business has not been existent for long or you need a lower loan amount, it becomes quite difficult to secure a loan from banks. On the other hand, qualifying for a loan in a non-bank lending institution is much easier. Decisions to award loans are based on merit and need instead of specific requirements that must be met.
Quick Access to Funds
Applying for loans in traditional lending institutions takes too much time. They have to evaluate too many aspects before deciding to grant you a loan, and even if the decision is made, it takes too long before you get the money in your account.
During emergencies and there is quick need for cash, banks are not the ideal option. Instead, you can opt for non-bank lenders where you get your quick loan approved and get cash as early as within an hour after application and up to one day.
Simple Application Process
Applying for a bank loan requires you to produce a lot of supporting documents that have to be reviewed before your loan is approved. You have to complete many forms, produce documents to show your income, and have your credit score checked.
On the other hand, you can qualify for a loan at a non-bank lending institution even after being rejected by banks. Even if you have an average credit score considered too risky by banks, you have a great chance of getting a loan at a non-bank lending institution.