2 Main Financial Solutions Offered By Blend.ph
Getting a Loan and Becoming a Lender Is Easier with Blend.ph
In this life, there’s one thing all of us have in common – we all need money. Even though you attempt to fight it, there is no denying that money controls everything you might need to live comfortably and worry-free here in this life.
Whether you are someone in need or someone with a stable cash flow, we can all agree that we can always do with a little more. Today, we’re going to talk about two main ways you can acquire extra funds, depending on your main goal in life.
Loans: What You Should Know Before You Get One
The first way to acquiring new funds is through applying for loans. Loans will help you get the specific amount that you need to help you get your things together, settle an emergency expense, or make a huge purchase.
Lending might have a bad rep for some people who are scared to keep their records squeaky clean, but getting loans are essential in many life milestones and major purchases. In fact, there are so many kinds of loans that you can get overwhelmed with the choices you can go for.
As a guide, let’s start with the two main loan classifications:
- Secured loans – This type of loan requires you to present an asset, like your car or your home, as a guarantee to the lender that you’ll pay your loan. This term is known as the collateral. This practice is observed so that the lender can collect something from you if you fail to pay up on your loans.
- Unsecured loans – This type of loan is not backed up by any form of collateral and the basis for your approval is your credit report or credit score. The interest for this can be a little higher and failure to pay leads to penalty and you might be brought to court.
Now, there are many kinds of loans that you might hear about:
- Home loans – You can apply for this loan to acquire a real estate property. There is a set amount applied for which is equal to the amount of appraisal for the home. The house itself serves can serve as the collateral until you fully pay it off.
- Business loans – If you have an entrepreneurial dream, this type of loan can turn that into reality. If you already have your small business, a loan like this can grant it expansion.
- Auto loans – You take out this loan if you want to acquire a new vehicle. Usually, this means the vehicle serves as the collateral of the loan, making it a secured one. After making a down payment, you have to pay monthly payments for a pre-set amount of the time until you fully pay it off.
- Salary loans – Typically a shorter-term loan, these are loans that allow you to get quick and easy access to money amounting similarly to your salary. You can depend on loans like this when you need emergency cash.
The Simpler Way of Applying for Loans
Traditionally, getting a loan is a lengthy process – and we are not just talking about the research it takes to learn about lending. Borrowing money in the Philippines requires you to prepare quite a few documents, wait for the pre-approval process, go with the approval process, and wait to receive the final decision. Admittedly, it can be quite nerve wracking and traditional financial institutions tend to be strict and conservative in filtering out who they will approve for loans.
However, if you explore the modern beauty of peer-to-peer lending platforms, you’re in for a treat. P2P platforms also offer similar loans – the only difference is that everything is done online. You can gain access to a quicker responding platform with lesser requirements than the traditional route – and you don’t even have to leave your house!
Generating Income by Becoming A Lender
Okay, so you learned about getting a loan.
But, what if that is not your purpose and you want more money through generating an income? Perhaps, try being on the other side of the equation? You can be a lender, instead!
If you try to trace history, private money lenders have been existence for centuries now. As people do not always gain approval from traditional financial institutions, some take chances with people who loan out money, albeit with a higher interest rate. So, you can be one, too!
To be a money lender, you just have to keep this in mind. First off, you should set how much you can actually lend. Traditionally, a healthy amount of money saved up is not enough. There is great weight in being aware of the high risks and the chances that you won’t actually get paid. Consider how long you can survive without the money and how much you want to earn from your money.
As a private lender, you should know who you will lend your money to. If you don’t know how to weigh in on people, this might not be the option for you. You should also make sure to get things in writing, preferably notarized, so you will be safe, should things go awry.
The Simpler Way of Becoming a Lender
If you want to invest your money by becoming a lender, your best bet is to work with a P2P investment platform. Peer-to-peer lending platforms are online venues or marketplaces designed to be a space where private individuals can connect with other, with one as a lender, and another a borrower. Usually, P2P platforms will collect a small fee for a lender to invest their money in the space, however, this small fee offers you security in your investment and a space to monitor your investment carefully.
With this method, you can get extra money as the interest incurred in the process will allow you to generate income. At the same time, you will not run out of customers because P2P platforms tend to have more affordable interest rates compared to traditional financial institutions.
Enjoy Both Solutions with Blend.ph
Whether you want to get a sum of money for your immediate needs, or you want to make your money generate passive income for your future, Blend.ph can help you. We are the Philippines’ leading P2P platform that allows both borrowers and lenders transact with each other, in a mutually beneficial arrangement. Learn more about the services we offer by going to our Lender’s page or Borrower’s page now!