Ron Lippold
RIP
has anyone used one, any tips. Im looking for a consolidation loan.
lending circles
- Thread starter Ron Lippold
- Start date
brucehudson
Member
- Joined
- Dec 14, 2006
- Messages
- 9
Would you be borrowing from a specific person (friend or family member) and using the lending circle to facilitate the transaction or joining and finding lenders.
One of the advantages to this type of lending, especially for a consolidation loan, is that your "situation" is taken into account. If you have credit challenges, you will have an opportunity to explain what happened, why, and what your solution is, also, many small business owners have difficulty proving income and using "social lending" gives an opportunity for you to show in non traditional ways how your business makes money.
The interest rates are often higher than traditional lending sources. The "lenders" in this situation are private investors, investing smaller amounts of money than banks, so are looking for a higher return.
If you are borrowing from a specific person that you pre arranged, such as a friend or family member, you are normally better offer borrowing direct and avoid any fees or "cuts" taken by the lending company. These contracts or promissory notes, can be found online, or I could provide a sample. (Sorry, no fancy website like Steve's - just let me know if you want one.)
Though the perils of borrowing money from friends or family could fill another post, I will leave that for another day.
One of the advantages to this type of lending, especially for a consolidation loan, is that your "situation" is taken into account. If you have credit challenges, you will have an opportunity to explain what happened, why, and what your solution is, also, many small business owners have difficulty proving income and using "social lending" gives an opportunity for you to show in non traditional ways how your business makes money.
The interest rates are often higher than traditional lending sources. The "lenders" in this situation are private investors, investing smaller amounts of money than banks, so are looking for a higher return.
If you are borrowing from a specific person that you pre arranged, such as a friend or family member, you are normally better offer borrowing direct and avoid any fees or "cuts" taken by the lending company. These contracts or promissory notes, can be found online, or I could provide a sample. (Sorry, no fancy website like Steve's - just let me know if you want one.)
Though the perils of borrowing money from friends or family could fill another post, I will leave that for another day.
