The qualities of a good borrower was discussed in a separate post. Now that you know the qualities you should possess and to eventually increase your chances of getting a loan approval, it’s time to say hello to the qualities a good – if not great – lender should possess.
This includes the following:
1) Has Sufficient Lending Limit
Imagine this: you are in the middle of expanding your mini-grocery business and you need enough working capital to make this work. When you go to your lender, they tell you that they cannot accommodate your loan because they don;’t have sufficient funds. It’s a bad sign, don’t you think?
Therefore, make sure you go for someone who is stable and willing to lend a higher amount. Otherwise, time to move on to another lender.
2) Flexible
Banks and other lending companies follow specific guidelines prescribed by the Bangko Sentral ng Pilipinas. In fact, they are subjected to regular audit to make sure they comply with the requirements.
Still, go for a lender that can provide flexibility in financing terms. They should be able to offer you terms that are within your capability without breaking any rule, whether lowering your interest rate or extending the maturity of your loan by one month.
3) Responsive
Bank terms can be intimidating and confusing for the laymen. This is why don’t hesitate to ask questions if you cannot understand something. A good lender should be patient enough to explain what the loan is about and every little detail in it. He/she must give you a walk-through of what the loan is about, including benefits and risks. A good lender must be able to answer your concerns, no matter how negative it might be, to help you determine if you are making a right choice. .
4) Unparalleled Reputation
Are you willing to lend money from someone with negative reviews? Do you want to borrow money from Lender A who was involved in a scam few years ago?
Reputation is important when it comes to choosing the best lender. You want someone who is reliable, trustworthy, and have a positive feedback from other customers.
In addition, make sure to maximize Facebook and other social media channels to check the credibility of the lender you are eyeing for. The good thing abotu social media is that people can easily give their firsthand experience about the service and treatment. This will make it easier to see how other clients were treated and how the loan application was also processed.
5) Experience
Apart from reputation and credibility, the lender’s track record or experience is also crucial in determining whether a lender is good or not.
By experience, this means a lender must be in the industry for years, knows the in and out of loans, and equipped with necessary and sufficient knowledge to address your needs. After all, the more experienced a lender is, the better it will be for the lender to handle your financial needs.
6) Partner and Not Just a Lender
Lenders often think highly of themselves because of their abilities and skills. This is not a good sign because a good lender must see themselves as your strategic partner. Aside from helping you find financial means, a good lender also provides management assistance that could further improve your business. They should offer services that allows you to deepen your knowledge and grow your money. After all, having a sustainable and self-sufficient business will benefit you a lot since you don’t have to work overseas.
With these qualities in mind, is your lender a good one?