A lot of people think that banks are the only organizations that offer loan products. If you are one of this type of people, I can tell you that there are a lot of places you can get loans easily. Some of these non-bank finance companies even have less stringent conditions.
I recently met an old friend of mine who was frantically looking for a place to get a loan for his start-up. I was shocked when he told me that he never knew of other companies that provide loans for businessmen except banks. You will be surprised that a lot of people are like my friend.
Getting loans can positively impact your lives if you use them in the right way. You can use loans to start your business, you can use loans to build a house or buy a car, you can use loans to settle your children’s school fees and a lot of other commitments you can think of.
Places you can get loans other than banks
Below are some of the places you can get a loan:
Leasing companies basically offer leasing products to their customers. These companies lease physical assets to businesses and individuals.
It is very common to see leasing companies leasing heavy equipments and machinery to industries. A mechanized farmer once told me that all the tractors and farm implements on his farm were leased to him by a leasing company.
I have also seen a medical doctor whose hospital was equipped with MRI, ECG machines and ultrasound machine through a lease financing agreement with a leasing firm.
Some leasing companies offer payday loans to people who are in paid employment. They also offer cash financing to small businesses.
Leasing companies also offer deposits and investments. If you place deposits with lease companies, you will be paid interests on your investment after the term or tenor of your investment or deposits.
Finance houses are like banks. They offer loan and deposit products to businesses and individuals. Though you cannot open a bank account with a finance house but you can place deposits or investments in finance houses and expect to earn interest on your deposits.
Like banks, finance houses are regulated by the Central bank or Reserve bank of a country.
The conditions of lending in finance houses are less stringent to that of banks.Get the Secrets of How to Earn Money from Side Hustles
Cooperative societies are very common in developing countries. These societies are created for people who have the same business or are engaged in the same type of work.
A group of farmers can register a cooperative society. Members of staff of a company can register a cooperative society.
Cooperative societies can extend credit facilities to their members. They can also accept investments from their members.
Payday loan companies
There are a lot of payday loan companies around. Payday loan companies offer loans to paid employees. The loans are mostly short term in nature. The debtor is expected to pay back immediately his salary is paid.
The interest in loans offered by payday loans can be very high so you need to be careful before taking loans from them.
Family and friends
Most people start their businesses by accepting loans or donations from family members and friends. If you need loans, you can ask your trusted friends or members of your family. Who knows, you might be lucky. They are likely to help you since they know you well.
Do you know of any non-bank organization that offers loan products? If yes, why not let us continue the discussion in the comments’ section.