What are the differences between a loan on your property from First Advance and a loan from a banking institution.
Firstly, a bank loan on a property is usually classified as a bond or mortgage. This loan is typically 25 years long and for the last couple of years pays off the capital of the loan as well. This loan generally is valued at 80% of the property value. This loan from the bank also will take between two to six months from application to pay out.
A loan from First Advance is very different. The main reason is that it is typically a short term loan. This means a period of one month to 1 year. This loan can take literally up to 24 hours from application approval to payout.
As you can see this is a vastly different financial product and as you can expect the interest rates are also very different. This is because the banks and the company work very differently. The company is not nearly as risk averse as the banks. What this means is First Advance is prepared to give a person a loan that otherwise would not qualify for a loan at a bank. In essence the company takes a far bigger risk than a bank would. As one can understand, First Advance charges a proportionately higher interest rate as a result of that increased risk.
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As private lenders, First Advance completely understand how crucial it is to have money quickly. The old adage of time is money is something that rings true with them. First Advance prides itself on qualifying and paying out your loan in record time. The business understands how business people work and how deals can be lost when money isn’t available as quickly as it should be. This is also why a premium for the services is charged.
There is obviously a place in life for all types of lending companies be it institutional banks, private lenders, microlenders, private equity funds or government aided finance packages. The trick for you as a borrower is to recognise the benefits and the pitfalls of the various financial products.
First Advance is very conservative as far as valuing and loaning money on unencumbered properties. From an ethical and legal point of view, the business avoids reckless lending….. therefore one of the critical aspects of the business is to check your affordability.
In a nutshell this means checking whether you have an ability to repay not only the monthly interest payments of the loan, but also the capital at the end of the period. This is very important, as the last thing First Advance wants is to repossess your property. First Advance therefore requires six months bank statements to check your financial history and liquidity. Although this does not allow them to see into the future, it provides a balanced and conservative opinion on your financial status.
A lot of potential clients ask for loans based on future deals and payouts. Unfortunately First Advance does not involve itself in that type of lending as they understand that all things in life can change and the risk involved of lending people money based on uncertain future expectations is not a business model worth considering.
So please people do your research, make sure you have a plan or strategy and if the product offering makes sense to you, please feel free to WhatsApp First Advance your details and documents as per the automatic note sent to you. Approvals are done on WhatsApp as it is very easy to get the documents required and to send you voice messages examining everything. It also allows the business to keep a record of all correspondence and communication historically.
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