Where to get a Loan

We all come across times when we need some money to invest in business, but our pockets are empty. Most people choose to take bank loans, but what if you don’t want to open a bank account? What if someone has bad credit rating and will never get a loan no matter what?

There are still many ways of getting loans even if you are struggling to open a bank account. Remember that bank also charges interest rate on your loan so it is a good idea to analyze and figure out your other options.

* Ask a friend/relative: If you are having trouble financing a new business, ask your best friend to support you with finances. Now most friends/relatives will hesitate in asking interest, and that is why you should offer them that yourself. The inflation rate is around 3.2% every year so your friend/relative is losing money if you don’t pay him the money in that year. Offer a good interest rate which can be the same rate as the banks or lower.

Open a bank account: Now I know this article is about people who do not have a bank account, but that doesn’t mean it is too late to open one. Banks are one of the safest places to secure your money and get standard interest rates. You will rarely see banks taking away your money, or being taken to court.

Loans are easily available in a bank without much verification. That is why there is a recession right now because loans were given without many restrictions on the criteria. However if you show them a decent salary you will get a loan in no time.

Venture Capital Funds: If you want a loan for a new business, look for investors who want to invest in your business. May investors are looking for highly lucrative businesses to invest in and many organizations offer a place where investors can meet new entrepreneurs to open up a business. The investors will share a profit/loss with you and this won’t be a loan but rather the investors will have equity in your business.

Creditors: If you have no other option available, there always creditors looking to rip someone off with high interest rates and strict policies, but they will give a loan to you. Search around your neighborhood for any loan creditors who are willing to give a loan. The interest rate however will be really high.

These are some of your options to get a loan when you don’t have a bank account, or don’t want to loan money from the bank. There is a problem; however which is that most of these options end up in the court.

So be responsible when you take loans