Borrow Without Bank: Credit Up to $ 10,000!

When you need money to buy a house, or you want to make a consumer credit the first reflex is to go to your banker. Except that when he says no, what to do? To those who find a closed door, know that it is possible to obtain credit without the banks. There are loans made by individuals to businesses, or to other individuals. Borrowing money in this way revolutionizes the system. The first winners of this new opportunity to make a loan are the consumers.

Borrow from an individual outside the banking system: Union loan

Borrow from an individual outside the banking system: Union loan

It is the current leader in interpersonal credit. It emerged at a time when consumer credit was reaching record highs, particularly for revolving bills that put many borrowers under the water.

With attractive conditions, credit between individuals with all its place in a system that only needed to be improved and finally competitive rates. Investors have also found their account: this new way of being able to place their savings yields, the rate of return of the responsible credit is even very good compared to other investments.

Friendsclear: a good idea that did not hold

Friendsclear: a good idea that did not hold

The Friendsclear website had to close in 2013. This crowdfunding pioneering crowdfunding was so well launched, and many professional projects had found something to get started, especially as Good Credit was a strong partner. But the BDF had some problems with the funding model, forcing the site to make significant changes.

These made the business model more difficult to implement, especially the capital guarantee which also required convincing the banking partner and it is therefore the very existence of Friendsclear that has been questioned. Indeed, LLCs could no longer find funding through this, only individual companies could still claim.

Recall

Recall that crowdfunding was in its infancy. And as often, it is the precursors who clink. Friendsclear has borne the brunt of a system still unknown in France. Too bad for them, but fortunately, others took over, and it works! Good news for companies looking for funds to create or even grow.

Companies can also borrow from individuals with Cream Bank

Companies can also borrow from individuals with Finsquare

As a business leader in place or in the making still wonders if a bank will kindly lend him money. This concern is legitimate, as traditional financial organizations are reluctant to engage with the boxes that need it in times of crisis, even if they have a good turnover and outstanding customer orders. This is where the PAP loan comes in to take over if needed.

How to make a loan?

How to make a loan?

Not all companies will be eligible. There are still strict rules to respect. The first is to have a box that is healthy, which has been around for 2 years   and who makes a significant turnover, more than 80,000 USD per year.

At the time of registration on the internet platform, you must indicate its SIREN number, to prove its quality of entrepreneur, then the amount of the loan requested and the duration for which you are ready to commit. Additional supporting documents will come later, balance sheet and income statement in mind.

The project will only be presented on the site when it is fully finalized. But that does not mean that the loan is accepted. It is the Internet users interested in the project who will have to make proposals, and they will have, according to the projects, 3 weeks for that.

How much does a loan of this kind cost?

It may be higher than a bank proposal, but also a little less, depending on the offers. Count between 4 and 10% generally, rate to which will be added the commission taken by Cream Bank. If business is going well, you will always have the option to prepay.

Beware, defaults can cost a lot of money, so make sure you have the cash needed for that when you pay the current monthly payment.

If you need cash, you can find in this other article how to make 10 loans in emergency.

Another loan solution for French SMEs: Best Bank

Another loan solution for French SMEs: Unilend

At Best Bank, the notion of commitment makes sense. Make a loan to an SME is to engage in economic life and support the fabric of small businesses that run the country. The loans that can be obtained in this way are important: from 10000 USD and up to 1/2 million USD. On the other hand, they are quite short time credits, which do not exceed 5 years.

If your project pleases a lender, the transaction can be completed very quickly, in minutes. Finally, it is not the time needed to receive the money, but rather the one where someone can say “okay, I commit myself”. To receive the money on the account, you have to count 1 month.

The big plus of Best Bank is the absence of other fees such as insurance or prepayment. And then, there are no guarantees to give. And that, difficult to find better elsewhere. It is a relationship of trust that must settle.

Remuneration and other issues

But the SMB website needs to make a living. If you get your loan through an individual, there will be 4% of the amount to pay in commission. But that does not stop there, since each year, it will have to add 1% of what remains to repay. It may seem a lot and a little at a time, if we consider that this financial leverage will allow to significantly increase its turnover.

To put the odds on your side, consider presenting your project as best as possible, to make it attractive. Remember that you can not defend it orally, so take care of the written presentation, emphasizing the strengths.

Banks are no longer the only ones to make rain and shine on the credit market. Just like for the hotel or car rental, private individuals get involved. If professionals in these sectors pull the face, it’s all good for those who know how to enjoy. The competition is therefore appropriate.