Top 6 reasons why you should consider securing a loan from a non-bank lender

securing a loan from a non-bank lender

Simplified loan application process

The good thing about non-bank lenders is that once you approach them for a loan, they will only ask for information that relates to their lending criteria. The majority of the non-bank lenders are only interested in the asset or cash flow they will be giving money on. When securing a loan from a non-bank lender, be assured that you will not experience the same inconveniences and a lengthy list of details needed from a banking facility.


The current world id dominated by online applications, with some creditors providing the entire setup online without submitting any documentation at all to get the loan. If it happens that you are seeking funds for the first time, then you have never had it so nice, and you will be traumatized to go through an offline lengthy and tedious paper application that creditors will then process using a manual system.

No frequent audits

Non-bank lenders are often specialized in the type of assets or business they give a loan to. Since they deal with these kinds of assets each day, the need for external audit every quarter is taken as unnecessary, resulting in a considerable reduction in cost for borrowers.

Diversify your creditor’s risk

In many occasions, when you secure a small business loan from a financial institution, they will place a security over your whole business even if you have given out your property as collateral. In this scenario, the bank has your assets and your business property tied up preventing you from asking for another loan against the firm.

Note that securing a loan from non-bank lending sector can alleviate these problems since you have the flexibility to negotiate the kind of security and more essentially deterrence of wrapping up all your properties. In many occasions letting a non-bank in can turn out to be somehow costly, however, you can diversify and disperse your risk against personal resources that can be used to raise funds when required.

Flexible credit limits

Bear in mind that non-banks have a very close relationship with the way their clients are performing. The majority of non-bank lenders will review their accounts every day and every week. The moment you request for loan increase, it is just as simple as making a phone call or sending mail. Most creditors will be very flexible with borrowers who are easy to handle and who take their time to follow the entire process correctly.

Single points of contact

The moment you start your relationship with a non-bank lender, there is always a salesman, followed by relationship manager or client manager. Once you are taken on, you have a single point of contact for your daily account monstering and inquiries. Note that you have all the freedom of talking to the client manager or just requesting to speak to the director if they felt they were not getting an appropriate answer. Having a direct contact with the key decision makers for time critical solutions is critical. It can have an intense effect on the daily business operations of your company. There is nothing so discouraging than asking for a loan advance, and it takes a long period to have the results

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