You may have heard the term, ‘private finance’ before, or seen it offered as a loan option should you have done some loan enquiries online, but what does it mean? At a first glance, one would assume that it simply means a loan to a person or persons that aren’t borrowing the money as part of a business, however, there is a little more to it than that as follows;
What is private finance?
Private finance is a loan that is offered by specialist companies that are not part of the mainstream financial loan’s world, for example a bank, building society or credit unions. Private finance can sometimes also be referred to as;
- Low doc loans
- Solicitor loans
- Private loans
- Non-conforming loans
The way that private finance works is that the loan company will offer you a loan based upon the equity amount in your property, for example, if you own 50% of your property then the loan company will offer you a loan based upon that 50%. How they work out the loan amount and repayments is very much down to them.
How can it help you?
A private finance loan could, quite simply be the lifeline that you need, if you are in a bit of a financial quandary. If you have applied for loans before but been turned down by the typical lenders, then this could be the way forward as the decision doesn’t take your credit history into account so much.
For some people, through no fault of their own have a less than good credit rating or history, things like personal finance can really help in these situations and if you pay the payments every month you can improve your credit rating.
If you haven’t applied for a loan but, you know your credit history is bad and, hence have not made any enquiries then now would be the time to start looking for some person finance lenders, you may find you can get that loan you need today.
How do you apply?
The simplest way to apply for personal finance would be to do an online search for ‘personal finance’ lenders, do a bit of research on each company, perhaps even make a call to talk it through. Generally speaking, though, you should be able to go through an online process and get your decision within minutes simply by following their online registration process.