Today money lending has become synonymous to bank lending. This is because banks are the most secure, trustable, and government regulated means of lending money right? Wrong, because not only are banks not the most secure or trustworthy source of money lending, but there are much more ways to get loans in a better way. And so, let’s take a look at some of the ways through which we can get better deals than banks, while we compare all of these means with banks.
Mutual funds as a non bank lending option
Mutual funds are a great way of wealth accumulating if you are already familiar with the market and have a good track record of investing in the right ones. You can use mutual funds as direct lending, or get a bank loan against the mutual fund itself. The advantage of this is that the mutual funds are less volatile and are likely to help you increase your money in comparison to direct bank lending. But a word of caution is necessary because mutual funds are subjected to market risks and should be used as a loan while keeping in mind that it is not the best non bank lending option and when you are absolutely sure about your mutual fund investment.
In comparison to bank lending, mutual funds can work great, but sadly they are at even at a greater risk of falling and losing all your money and actually end up with more debt in the end.
Crowdsourcing as non bank lending
Crowdsourcing has become a rage these days. You make your proposal and then upload it for the world to see and donate. But your work is not done, as you have to keep on looking out for people and to promote your cause to get enough money that you reach your lending goal. But of course, this might not be a guarantee of getting your money, as it is quite difficult and time-consuming to actually get people to donate to your cause. But on the other hand, you do not actually have to pay all of those people back, as the crowdsourcing is basically just crowd donation of non bank lending money that you can keep for yourself.
Crowdsourcing in comparison to bank lending is completely risk-free. There is no interest; in fact, there is no pay back at all. While on the other hand, banks loans can happen faster than crowdsourcing.
Merchant Cash Advance as the best non bank lending option
Finally, we will talk about Merchant Cash Advance, a way through which you can get your money in a way which is much faster than banks, but also as safe as crowd sourcing. The way it works is that you approach the company with your proposal. Once the proposal is approved, you both negotiate and sign the contract together.
And you will get your entire money within twenty-four hours, which you will pay back with your future credit card sales. All of this is secured and payback is assured without the need to sending monthly installments to banks. And so, Merchant Cash Advance is the best non bank lending option out there.