Sources of private loans outside the banking, before someone start a business, There are three sources to obtain personal loans, ie relatives, friends, acquaintances (acquaintance business), and angel investors or investors who really help without anything in return. Furthermore, in this second article will explain the benefits to borrowers, funders, and how to identify potential funders. What are the advantages for the borrowers?
Usually when we use his own money, then the next funding is borrowing from the above three individuals. Well, we are also able to fund loans with no collateral loans and credit cards. But, it takes a high interest rate, no extra costs, and necessary credit history (credit checking). For that, the borrower can provide competitive rates to attract loans.
Money from friends, relatives, and acquaintances were there, and they usually do not do credit checking, but preferred working relationship. Read the rest of this entry »