Private financing is a particular type of personal designed to take advantage of direct access to credit, without the need for intermediaries of traditional credit institutions. Here is explained in detail what it is, how to request them and how to protect yourself.

What is private finance?

Have you ever had to face a sudden expense and not have enough liquidity to cover it with your own strength? If the answer is yes, you will certainly know that the most common way to access credit is to apply for a loan at the bank.

In order to apply for a bank loan it is necessary to have some fundamental requisites, elements that are required by the credit institution as a guarantee to be able to finalize the opening of a credit channel. First of all, you will have to have a stable and demonstrable income, the result of a permanent employment contract or a pension.

But what happens if you don’t have these requirements? If you have lost your job or you do not have a permanent contract, know that you can still use private financing . These are basically small Wilkins Micawbers that can be given to you by relatives or friends, to be returned with or without interest.

Private financing: clear agreements, long friendship!

Private financing: clear agreements, long friendship!

Regardless of the amount outstanding, the first thing to do is to draw up a contract between the two parties in which all the information relating to the loan is specified. Particular attention must be paid to certain indications, especially as regards the total sum of the financing as well as the installments and the details of the person who will use the sum of money.

Although this is a form of credit that is less stringent than that required by a credit institution, it should be noted that it is essential to proceed with caution and with conscience. When drawing up the contract it is always advisable to pay particular attention to the fact that all the information on the loan is correctly filled out; sum financed, times and methods of return, any guarantees for the creditor and so on.

In the case of writing a private agreement, the contract must be drawn up in duplicate.

Social lending: the new frontier between private individuals

lending

Social lending is also present in private finance, a form of online credit that facilitates the meeting between lenders and creditors. Making use of social lending is a wise choice especially with regard to the traceability of transactions, the protection of privacy as well as the personalization of the credit required as regards the entity of the same, interest rates, installments, the duration of the loan and so on.