Alternative Finance is Beating the Banks

Many of us require a loan at various times in our lives and traditionally that has meant a trip to the bank to see if it is our lucky day. Applying for a loan from the bank has never been a particularly pleasant affair, as you are made to almost feel guilty that you are in the position of needing some extra money. So, you fill in the various application forms and sit back to await your fate. Assuming of course, that you are approved for the loan, the bank will tell you exactly what the terms of the loan are going to be, the period, the interest and the monthly repayments. This is all very well, but it is all very rigid. If you wanted a quick loan for a three month period, you are not going to be overly happy that you are being given a twelve month loan, meaning you are paying interest on it for an additional nine months. Worse, many banks penalise you for paying it too quickly, so one way or another your loan could easily cost you a lot more than you had hoped for.

Where is the Flexibility

Banks are not renowned for being particularly flexible, because they haven’t really changed their way of doing business all that much in the last hundred years. Certainly they were one of the early adopters of IT, but much of their adoption was focused on record keeping for the ever growing compliance legislation and towards providing a better level of customer service. At the same time, IT was making a big impact on many industries around the world, and the world of finance has been no exception. While the banks have retained their standard and fairly rigid offerings, others have been quick to recognise that money flows around the globe far swifter and economically than ever before, providing new options for borrowing money under far better terms.

Financial Technology

Blockchain technology and crypto currency are terms we are hearing more and more often. They are aspects of a new way of doing business faster and cheaper than before, that is termed financial technology, or FinTech. A new form of alternative lenders are taking advantage of the speed and economical way of accessing funds globally to revolutionise the lending industry, and the banks are proving a little slow to get in on the act. A site like http://www.maxfunding.com.au/ is able to do something many never thought possible, by giving you the chance to set all of the parameters and terms for a loan, of exactly what you want to borrow, over what time frame you repay it and how much you want your repayments to be.

Applying for a loan with an alternative financier is incredibly simple as the whole system is fully automated, with a software programme which runs a search based upon the precise details of what you want to borrow, over what period, and references lenders globally to find those who match. You can make the application and get an answer on it in a matter of minutes. With numerous options to choose from, and on your own terms, finding a better deal than the bank has become so much simpler.

 

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