Private money lending, also known as merchant cash advance loans, is when an individual or small business loans an investor or merchant cash advance company their personal money to be used for investing purposes. As private money lending is generally private, it is up to the private lender and the borrower to set the terms of their loan. However, there are several benefits to using a merchant cash advance company rather than arranging the loan on your own. Many of these companies will offer an instant approval, which saves you from having to wait weeks or even months for an approval through normal banks. They can offer lower interest rates and longer payback periods.
These moneylenders will also charge very low fees compared to other money lending institutions. Most moneylenders will accept all major credit cards and debit cards. The only thing you may need to provide is an identification number so they can deposit your payment directly into your bank account. Most of these lenders will allow the borrowers to set the repayment amount and the interest rate. Most will also allow the borrowers to choose between monthly or annually.
When searching for private money lending you may want to compare different companies to make sure you are getting the best deal possible. Many times the private lenders will have lower interest rates and longer payback periods because of their lower costs and faster processing. However, the main benefit is that they have a lower risk of defaulting on their loans because they are not subjected to federal regulations like banks and traditional loan lenders are. Therefore, if you need quick cash, these private money lending companies are the way to go.