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In personal lives and the world of business, one may have a need for money at any unannounced moment. There may be times when one may have the money and at other times they may have to borrow money. As Syndicate Finance says, while it is always possible to get money from banks and financial institutions to get the money, there is a great amount of formality that is attached with the borrowing. In such cases, the best alternative that a borrower finds is to get in touch with a private lender and get the money that they require. In taking money from a private lender, there are both pros as well as cons attached, which can be enumerated as below:
Cons of borrowing from a private lender:
1. The biggest disadvantage of borrowing from a private money lender is that the rate of interest charged by the private lender is usually extremely high as compared to the banks or financial institutions.
2. In cases where the money is borrowed for a business venture, there may be a risk of not getting the complete promised amount. The chances are high that the lender may invest in phases and after the initial phases; the investor may stop giving more money.
3. There is also a risk of the lender asking for a return of money before the term of the loan is over, since the private money lending business is largely unorganized.
4. The chance of interference from the lender, in a business idea is also a real threat when the investor is a private money lender.
Pros of borrowing form a private money lender:
1. The amount can be easily borrowed, without any major documentation or processing formalities. This is true because the money lending and borrowing usually happens between those who are acquainted with one another and they do not need to have extensive paper work done.
2. The duration for the loan can be decided as per the need of the borrower and even if the money is returned sooner than the decided date, no extra charges are levied by the lender.
3. As per Syndicate Finance in Mumbai, it is also a fact that the fulfilling of interest instalments is something that can be varied as per the understanding of both parties, because the borrower does not run the risk of a bad credit rating score when the transaction is with a private lender.
4. Finally it is easier to convince a private lender for a business idea because they are more likely to be open to new and innovative ideas than the official of banks and financial institutions that need to follow a rule book.
When a private money lender is chosen for acquiring a loan, it is important for the borrower to weigh the pros and cons considerably so that the right decision in borrowing is made.
Syndicate Finance
Address: 428, Rawal Bldg.No.1, 1st Floor, Opp. Indusland Bank, D.B.Marg (Lamington Rd.),MUMBAI-400 004
Phone No: 91-22-2388 0634
Cons of borrowing from a private lender:
1. The biggest disadvantage of borrowing from a private money lender is that the rate of interest charged by the private lender is usually extremely high as compared to the banks or financial institutions.
2. In cases where the money is borrowed for a business venture, there may be a risk of not getting the complete promised amount. The chances are high that the lender may invest in phases and after the initial phases; the investor may stop giving more money.
3. There is also a risk of the lender asking for a return of money before the term of the loan is over, since the private money lending business is largely unorganized.
4. The chance of interference from the lender, in a business idea is also a real threat when the investor is a private money lender.
Pros of borrowing form a private money lender:
1. The amount can be easily borrowed, without any major documentation or processing formalities. This is true because the money lending and borrowing usually happens between those who are acquainted with one another and they do not need to have extensive paper work done.
2. The duration for the loan can be decided as per the need of the borrower and even if the money is returned sooner than the decided date, no extra charges are levied by the lender.
3. As per Syndicate Finance in Mumbai, it is also a fact that the fulfilling of interest instalments is something that can be varied as per the understanding of both parties, because the borrower does not run the risk of a bad credit rating score when the transaction is with a private lender.
4. Finally it is easier to convince a private lender for a business idea because they are more likely to be open to new and innovative ideas than the official of banks and financial institutions that need to follow a rule book.
When a private money lender is chosen for acquiring a loan, it is important for the borrower to weigh the pros and cons considerably so that the right decision in borrowing is made.
Syndicate Finance
Address: 428, Rawal Bldg.No.1, 1st Floor, Opp. Indusland Bank, D.B.Marg (Lamington Rd.),MUMBAI-400 004
Phone No: 91-22-2388 0634
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