Non-bank lenders are financial institutions that are not recognized as full-scale banks for the reason that they do not provide both depositing and lending services. Note that non-bank lenders have the right to engage in credit card operations or any other lending services, provided they do not offer depositing services.

Banks have traditionally served as the only institutions that offer loans to small business owners. Unfortunately, these banks are not well suited to meet all the needs of the current developing businesses. Dissimilar from non-bank lenders, banks always prefer large sum of funds that you do not need, and they also require a high-quality security that you don’t have.

The majorities of individuals are familiar with leading banks and tend to choose them when they want to secure a loan for their business. However, if you seek advice from a professional loan manager, he will surely check out the non-bank lenders so that they can find out what they can provide. On top of that, some of these non-bank lenders are currently ranked up with famous banks on the product and services.

Essentially, a non-bank lender is a creditor that is not a bank, credit union or building society. They have their source of finances that they loan out with a margin for income. To make the process easy, they also have internet banking since many individuals do not like to visit branches.

Why secure a loan from a non-bank lender

There are numerous advantages associated with obtaining a business loan through a non-bank lender.

Lower charges and lower interest rates

In most cases, non-bank lenders have smaller overheads. This is because they have fewer offices and they expenses are less when it comes to marketing and labor. At the end of the day, this will translate to lower fees and excellent interest rates.

More personalized services

Non-bank lenders strive to provide a more personalized service for the reason that they tend to have a smaller database as compared to that of banks. It is evident that a client will be given more attention right through their loan application process. On top of that, while in some occasions you might be dealing with many individuals at a traditional bank, with non-bank lenders you will be dealing with one person all through the entire process.

Quick loan approval

In most cases, it will take an extended period to get a business loan approved by a traditional bank. However, with a non-bank lender, your loan will be approved fast since your broker has finished most of the paperwork. For this reasons, minimal time is need to review your loan application.

A wide range of choice and products

Given that there are many non-bank lenders in the market, you have a decent opportunity of getting a lender that suits your particular needs and circumstances.

More customers friendly

The majority of non-bank lenders are somehow easy to deal with as they evaluate your situation based on your merits at that moment and business plans.