Have you heard the wise old saying before? Neither a borrower nor a lender be. Economies have collapsed because of this ignorance. But if only it were that easy. There are still valid and timely reasons for working with private money lenders. This is what happens when mainstream bankers are no longer prepared to play ball. And yet still, they continue to make that mistake of favouring institutions that give them a sense of potential profits going forward.
And the harsh reality remains. While most banks are by law at least well-capitalised, they still need solid assurances that they are going to get their money bank. This, unfortunately, is not always possible for the small-time borrower. Lacking in conventional resources for now, the borrower has no way of showing the bank how his business could or should grow before he is in a position to capitalise the full loan amount.
The private money lenders take a different approach. While they are still beholden to trade and finance law, their small contributions could still help the small business entrepreneur. In most cases, by law, these small institutions will only loan out increment amounts that they know for certain that their customers will be able to pay back. It also becomes a case of living within your means, and you should have no business taking out a loan just to tickle your fancy over some or another luxury or whim which you would not normally have been able to afford anyway.
You sleep better at night when you act responsibly. Many of you might still be a long way off from settling old scores but these off the map institutions might be able to help. No getting away from the fact that money seems to be the root of many ills.