Guest post: 5 things to look for in a lending network

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By: Amy Zimmerman

Over the last few years, getting financing for business projects has become a herculean task. In fact, even getting short term financing to repay debts since the global recession in 2007 is an arduous task. Most traditional financial institutions have introduced stringent measures which leave most borrowers out. Amidst this backdrop, lending networks have developed to fill in a gap left by traditional financing options.

If you are struggling to finance your business or you are in search of a quick loan, getting an insight on 5 things to look in a lending network is imperative.

What are some of the benefits you get from such a network? For starters, a lending network provides an easier financing option because the time spent since application to the point of getting cash is shorter. This convenience is compounded by the fact that interest rates on financing are lower than in traditional institutions as reported by CBS in 2008. In most cases, you can even get better rates to refinance your mortgage and other debts which is a much needed reprieve in the current economic doldrums.

A lending network can either consist of peers or even lending institutions which have large networks such as banks and lending programs which will suit any customer's needs. With so many of these groups around, what are some of the 5 things to look in a lending network?

Type of services offered

Everyone has unique needs and as such, the lending network you choose must offer a wide range of services. These range from refinancing options, mortgages, auto loans, bad credit facilities, short loans among many others. Moreover, if you want to join as a lender, then the network should also be ready to absorb you.

Reputation

One of the most important among the main 5 things to look in a lending network is of course its integrity and prudence in financial dealings. Many networks have featured in the news for all the wrong reasons and hence, research and read reviews and testimonials from past clients. Check your local BBB to learn of any complaints regarding the service, especially on professional conduct.

Experience

Evaluate the company's record in the financial industry to ensure they have the expertise to manage a financial portfolio. Check the company's website and evaluate staff training and individual experience in the industry before committing to work with the network. You can also look at its partners in the financial sector to ascertain whether the network is a stable financing option.

Privacy policy

Check your lending network's privacy measures to ensure it has a stringent policy. This will reduce the risk of losing your personal and financial information especially in the contemporary internet world where hackers abound.

Customer service

In most cases, you will have looked far and wide for a good financing option and hence, a lending network with dedicated, informed and sympathetic staff will definitely be the best option. Unhelpful customer service is an indicator of a more deep rooted problem in terms of the network's working ethics and practices. As such, move on if you are no comfortable with the kind of assistance provided.
Other considerations include the interest rates, licensure and other requirements. One crucial aspect among the main 5 things to look in a lending network is of course the nature of eligibility requirements. If they are overly stringent, then keep looking.

Amy Zimmerman regularly reviews online lending services. Be sure to look into the trustworthy report on Lending Club at Lending Club scam to make a clever financial judgment regarding this service.