Tags Customer Experience Online Lending
With alternative lending becoming increasingly popular, especially among those who find it more difficult to obtain loans from traditional financial institutions, it is worth examining the pros and cons of lending from this sector:
- Flexibility — being traditionally more free from regulatory burdens, alternative lenders can usually offer more flexible terms and conditions, including interest-only payments for a period.
- Fast service — compared to traditional financial institutions, alternative lenders can typically get funds to customers quickly.
- Experience — alternative lenders have a wealth of experience working with distressed borrowers.
- Term length — most alternative loans are for shorter terms.
- Short-term partnerships — typically, alternative lenders are not viable as long-term financial partners.
- Cost — alternative loans generally have higher rates and fees associated with them.