Loan sharks, desperate for borrowers and what not – over the years, hard moneylenders have managed to establish a reputation that may often seem exaggerated to even themselves.
And then the ‘classic’ motive of the more established players, to capture the market, not prepared to let their grip loosen over the consumers – starts to explain things little by little.
Add to that the lack of exposure the industry has received over the years in contrast to its respectful counterpart. This has further widened the gap between the apparent and the actual, adding to false information.
The team of GCP Funds Ltd. brokerage private money lending services— ah! — it explains as to why we are playing devil’s advocate here… Some might say!
And admittedly, yes, we are, but not for the sake of argument and neither because we are part of this industry. But because we want to educate our readers about the actual, and then they can decide if perceptions need to be sustained with, or they need to be reformed.
Loan Sharks – Some Call Us!
Private money lenders are loan sharks: We charge high interest rate to milk our clients.
The middle part of the above statement — we charge high interest rate — is true. But not the part preceding it or acceding it.
Unfortunately, that part in alone is enough to give private moneylenders the false reputation.
A Bit of Perspective Needed
Yes, hard moneylenders charge high interest rate but what about the mention of the minimum due diligence involved in acquiring a private loan? Surely, there needs to be a way to offset the risk that private lenders are willing to take?
What about the quick processing time that private money lending offers?
Surely, they couldn’t have gone to be successful, if private money lenders only cared about pillaging their clients.
And do you know the name of the private money lender who loaned them the sum of $20,000?
It was Richard Branson.
So, what was it about private money lenders and loan sharks?
Ahan, so now readers, you might observe the detractors change the goal posts and say:
But there are private money lenders who do harbor ill motives.
We won’t argue against the case because, just like in any other industry, private money lending has its own share of bad apples.
However, because of a few bad operators, the whole industry shouldn’t get a bad name.
And if, someone can contribute to the growth of national economy – it becomes even more baffling as to why they would operate on the professionally unethical principles to cause harm to investors?
It’s high time people change their perception about private lenders.
Want to know more about private money loans and the lending process in general? Check out this post to further expand your understanding on the subject.