You need money, but you don't want to go to the bank for this. It may not sound logical, but nowadays it is possible: borrow money without a bank. Loans from banks are sometimes difficult to realize, because banks simply do not lend money that easily. Interest rates can also rise considerably, they say for good reason: " Borrowing money costs money ." That is why people often choose other alternatives to borrow money, without the intervention of a bank. This is also possible for private individuals. Are you reading?
Borrowing money without a bank is the latest trend
Tap “borrow money” on the internet and you will get almost 10 million hits, of which the top one is a bank, but the 6 hits below are not. It is increasingly emerging; borrow money without a bank. You don't necessarily have to go to the bank to get money, but where do you go? And is that responsible? Are you not getting ripped off? How does it work? I have listed a number of options for you. You do not need to have a company for this, this is simply possible as a private individual.
3 Tips for borrowing money privately without a bank
The most obvious solution for some is borrowing money from someone else, also called private borrowing . You will probably soon end up with family or friends. The advantages are that there is a low interest rate, or perhaps no interest at all. You also do not get a BKR registration, which can hinder you, for example, when taking out a mortgage.
The disadvantage of a personal loan from a friend or family member is that it can damage the bonds. For example, if you do not repay on time, or the lender wants to have his money back suddenly or needs it anyway. So make sure that proper agreements are made at all times, make a payment arrangement and ensure that you comply with it. That way you can still go through a door together.
This is also referred to as 'crowdfunding for private individuals'. As a private person you can place a call on a special platform with how much money you need. You can of course pitch this to get as many participants as possible.
Other individuals can lend you the money. In return, they receive the monthly payment plus an interest rate. Usually around 5%, but this depends on several factors. Most platforms do ensure that the loan applicants are tested for their creditworthiness. Only then can you, as a lender, assume that the borrower does have the means to repay you. But of course it remains a gamble and is not waterproof.
With crowdfunding , money is brought in via a website. You tell your story, after which people can donate. You can use this as a loan, after which it is paid off. But you can also receive money as a donation with a crowdfunding. Sites like GoFundMe and the like are now quite large.
However, the question is how much money you can receive through this route. Often a good story is important before a donation is made. Social media can also play a major role in this. If you ensure that your story is seen, read, liked and, above all, shared, the chance of a large return is a lot higher.
So there are several ways to get money if you don't want to go to a bank. Of course, the most important thing is to keep using your common sense. Don't be tempted by offers that are too good to be true. Often it is too beautiful.