Navigating through the financial maze – A borrower’s perspective
‘Neither a borrower nor a lender be’, is a famous quote from the playwright William Shakespeare, which seems to suggest that we should all be financially independent with no need to depend or give funds to other people. Whereas that might be great goal, the reality is that borrowing and lending has become a way of life for most persons as they struggle to meet their expenses. What though does the average Jamaican deal with when they borrow from any traditional financial institution?
The first stage of qualifying for a loan is to prove that you have a steady income and can afford the repayments; however this is just the tip of the iceberg. The financial quicksand begins when a potential borrower has to find their way through a maze of requirements in order to convince the financial institution that they are a good credit risk. The borrower, after providing his ID, pay stubs or job letters, proof of address and filing out lengthy forms, is subjected to the further inconvenience of waiting for approval which can take up to several weeks.
This process can be exhausting and stressful, but it’s even worse if you are self-employed. Self –employed persons often struggle to show that their income is sustainable enough to qualify for the loan. These persons are required to produce bank statements to show a credit history of up to two years. Regardless of your status, banks and credit unions run an extensive credit check which involves ensuring that there are no incidents in which the applicant has previously defaulted on previous loans or had a poor payment history.
Is it worth it?
For many borrowers, the option of taking a loan is a last resort and for others it is a common way to generate needed funds. Should you take a loan? The rule that should be followed when considering taking a loan is, ‘if you can’t pay it back then walk away’. Too many people don’t consider the hefty repayment schedule that is required when they take a loan and if the interest rate is high they end up in a deeper financial hole.
There are other factors to consider such as: how long you have to repay the loan, any special conditions attached to the loan such as penalties or fees associated with the loan such as early exit or repayment and withdrawal fees.
If you decide to go ahead and take the loan, the arrival of funds can instantly transform a struggling entrepreneur into mogul, allow you to complete your education, upgrade your home or car and allow you to take that dream vacation.
Loans are definitely to be considered carefully, but they can certainly provide a financial cushion to help persons make positive changes in their life.
trouble accessing loans?
At Biztech our borrowers are connected to the best lenders that suit their needs. Our lenders can provide you with loans that banks are just simply unwilling to give. At Biztech, we pride ourself on providing hassle free loans. Biztech has a fast application process which requires less paperwork and minimizes the frequency of your visits to a physical branch.
Visit our website https://biztechp2p.com for updates and advice on peer to peer lending to see if it is right for you. Let us help you fast track your financial goals