When you are in need of some financial help, you turn to the banks. But sometimes they don’t give you the help that you need. So, what can you do if you are in need of some financial assistance? There are some alternatives to that, some can be reliable while others cannot be.
So, you need to choose practically and wisely which option is more suitable for you. They are also easy to find and are available all the time.
Alternatives to Bank Financing:
There are many alternatives to bank financing, but the below mentioned are the five most reliable out of them. They are as follows:
1. Government Support
If you belong to a poor family and the bank is not giving you any financial support then you can turn to the government for help. Governments provide grants and loans to people who are in dire need for them. You don’t need to have any credibility to you for getting a loan or grant from the government like in the banks.
So, there are different government grants and loans according to the purpose for which you require the money.
2. Peer-to-peer Lending
If the bank doesn’t give you the financial help you need then you can turn to your friends and family for help. Many of your peers don’t even charge rate of interest from you for the financial help they give you. But some do due to their own need of financial support.
So, another alternative to bank financing is getting help from your peers. Though sometimes it can even change your relationship with your peers if you hold off paying your debt to them on time.
3. Gold Loans
You can keep your gold and jewelry as a leverage with some financial institution or some private money lender and get money in exchange for the gold. This is also one of the common methods used by people to get the financial assistance which they require.
But if they are not able to pay off their loan then they can lose their gold a jewelry as the institutions or individual will sell it to pay off their loan by themselves.
4. Property or Land Loans
You can keep your home, property or land as a leverage with money lenders or private firms and get money in exchange for it. Though you have to give the paperwork of the assets to the money lender as well. So that if you are not able to pay off the loan, the property ill then belongs to them. They can keep it or sometimes even sell the assets to get their money back.
This type of financial assistance can be risky but it is also one of the most common method used by the people.
5. Private Money Lenders
There are many private money lenders and firms who provide financial assistance to the people when the banks don’t. Though they charge a high rate when of interest on the principal amount which can be hard to pay off as they give money for short-terms basis only.
So, these were 5 alternatives for bank financing, they are also easy for you to find as well. You can also use these alternatives if you don’t want to go to the bank as it takes a lot of time and paperwork to get the money. While you can easily get the money from here without much of the paperwork.