What are The Characteristics to Look for in a Licensed Moneylender?

When you are self-employed or running your own business, you could seek financial assistance from a licensed moneylender to boost your overall cash flow cycle. Apart from providing you with appropriate financial support, a licensed moneylender would be providing you with much-needed expert financial advice. Sometimes, the right financial advice could help you withstand rough times in terms of your business. However, you must not trust or rely on all moneylenders as not all of them are legit and good. Here are some of the essential traits of a legitimate or licensed moneylender.

Unmatched Reputation & Credibility beyond Doubt

A moneylender you choose must have a good reputation and a clean track record. He must have an unparalleled reputation and has all the necessary legal licenses. It is best to consider working with a moneylender who has been in the business for a number of years and has been able to establish goodwill in the market. His long experience in the trade would demonstrate his financial strength and stability, and the ability and willingness to comply with the existing law. Reputation is a crucial factor to consider while choosing a moneylender. Obviously, you would not choose someone who was involved in some sort of a scam or who gets negative reviews online. Naturally, you are looking for somebody who is trustworthy, reliable, and who gets positive and rave reviews from his clients.
Unmatched Reputation & Credibility beyond Doubt
Before taking a loan from a moneylender, it is necessary to examine the credibility of the concerned person across various social media platforms. The best thing about these social networking sites is that people are free to share their firsthand experience and association with the lending agency and they can openly discuss their treatment and the quality of service received. Online customer reviews are a great way of assessing and judging the efficacy and authenticity of a private moneylender. You must choose even reputed lending companies such as https://www.libertylending.com/ after assessing their track record online.

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Third-Party Accreditation is a Must

According to https://blog.walnutstreetfinance.com, “The private lending industry has an association, the American Association of Private Lenders (AAPL), defined by a set of clearly defined and well-organized principles of cooperation, education, ethics and accountability. Look to see if your lender is a member in good standing.” We understand that members need to follow all industry standards and best practices, they are subjected to ethics reviews, and it is essential for them to take continuing education obviously, in the field of money lending to stay abreast with the recent developments, issues, and the latest trends in the money lending sector.

You must look up BBB or the Better Business Bureau for verification of legitimacy. You must choose an accredited moneylender with a rating of A+. Borrowers are advised by experts in the trade to do ample research and thorough background check of competing moneylenders via online customer reviews and testimonials. You must be alert when a licensed moneylender does not opt to join Better Business Bureau or even when an independent third-party such as TrustPilot, give it a low rating.

Offers Adequate Lending Limit

Suppose you are all set to expand your startup and you know that your moneylender would be helping you with the working capital. But when you approach your lender, he tells you that he does not have sufficient funds to approve your loan request. That could be highly depressing. So right at the start, you must make sure that the private moneylender you are choosing has a stable and steady financial background to be able to lend you high amounts whenever necessary.

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Flexibility is the Key

Flexibility is the Key
Traditional financial institutions and banks follow standard guidelines and they go through regular audits to ensure that they are complying with the specific regulations. So these conventional lenders cannot afford to offer flexibility. You must choose a moneylender because he can provide some amount of flexibility in his dealings with you. He could offer flexible financing terms so that you are able to avail the loan. Private moneylenders could lower your interest rate or even extend the loan term as per your unique requirements as they do not follow stringent policies unlike traditional banks and financial institutions.

Follows Less Stringent Policies

Banks are used to following rigid regulations and rules particularly in case of personal loans and small businesses. You would require doing a whole lot of documentation yet your loan request could be denied citing some flimsy grounds. Your chances of getting a loan approval when you have a poor credit score are almost non-existent if you apply to the banks and other conventional financial institutions.

Legitimate money lending firms have somewhat relaxed and less stringent lending guidelines. Their relaxed lending policies could prove to be a major factor in dramatically changing your financial life.

More Relaxed & Malleable Terms of Engagement

The biggest headache for borrowers is if the loan terms and the repayment schedule are manageable or not. Obviously, nobody wishes to take out a payday loan and end up being in major financial problems in the future. A licensed moneylender would be providing reasonable and negotiable terms.

Experience & Expertise

Experience & Expertise
Apart from credibility and reputation, the moneylender’s expertise and experience are crucial factors in determining if the lender is competent and reliable or not. You must check the track record of a professional moneylender and hire him only if he seems to be widely experienced in this trade. He must be equipped with essentially sound knowledge and proficiency to effectively address your needs. A well-experienced and competent lender would be handling all your financial requirements promptly and efficiently.

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A Strategic Partner All the Way

A moneylender must prove to be strategic partners in helping your business attain success. A moneylender helps you by providing capital for your business whenever the need arises. Moreover, a good lending company must act as your financial advisor too. They should offer effective management assistance for boosting your business’s overall performance and success.

Conclusion

A good moneylender is able to provide truly hassle-free loans, a streamlined and prompt loan approval process. Thanks to evolving financial law and advanced technology, you could identify a genuine or legitimate moneylender much faster than before. Be strict about choosing only licensed lenders who have the relevant accreditation or license.