Private Loans – more information to know

Personal loans are becoming more popular and are the alternative to a bank loan. Anyone who has played the game of banks once knows that there are many conditions attached to a loan. Mountains of forms and long waiting times join the credit inquiries. The alternative to a bank loan is a personal loan. At first glance, this may seem questionable, but in addition to rip-offs who earn their money with high interest rates, there are also serious private partners. These private donors see the loans as an ideal investment of their money.


Private credit: Not just an opportunity for start-ups!

Private credit: Not just an opportunity for start-ups!

Business start-ups in particular, who are just beginning their professional independence, have many problems with banks. For business founders, the bank must see great potential in the idea that is sold for a loan to be approved. However, start-ups and those who want to become one also have the opportunity to obtain their loans from private individuals.

The advantage of a private loan is obvious: Although you pay interest to private lenders, these are usually lower than those of a bank, but they are higher than, for example, overnight or time deposits, which is why the lender has a large one Advantage of return.

For example, if you are a business founder, you still have some convincing work to do. A mature business plan should definitely be available to convince the private investor. As a business founder, you also have a great advantage if you choose the private equity option: You have someone with a lot of experience at your fingertips who will help you on the often rocky road to starting a business. Here is more information on private equity and venture capital.


Find the right partner

private loans

Of course, there are also black sheep in the private loan industry. The Internet is a good source of information: there are already some portals through which you can apply for a loan from a private person. Here you enter the amount of the loan required and the amount of interest that you have imagined.

The lender then becomes aware of your ad in a pool. As a borrower, you can also browse through the advertisements and find yourself a private lender. Always make sure that your credit rating is asked, if it is not checked, it is better to stay away from it. Credit checks are a good sign that people are also concerned about the loans to be granted – and it also serves your safety. But not only you, the lender is also checked.

Such portals usually work closely with credit record, which carries out the credit checks. This is not always pleasant, but you are on the safe side with such portals and do not have to be afraid of high interest rates, which you might end up ruining.