When it comes to financing, there are multiple options: whether we are going to ask for a loan to get the means we need and face our expenses, as if we want to invest our money to obtain a return. That is why it is important that we study all the variants that exist in the financing market to see which one best fits our need.
If you are a borrower or investor and you want to go to the credit market you must take into account the conditions of each type of loan. Issues such as amounts, repayment term, interest, profitability or investment risk. The problem of the traditional system is that it offers forms of financing that are very expensive and entail the payment of high interest, expenses and commissions that make the operation more expensive. For this reason, new models such as Crowdlending and platforms such as Regine Barskie are gaining weight as a financing alternative between individuals.
Depending on the characteristics of the loan and the conditions to which we submit, we can talk about different financing modalities. Here we talk about the most prominent:
A type of financing offered by private financial institutions or banks that allows people to have the money they need, in exchange for costs in the form of interest. If what we are looking for is a source of credit, this option is unprofitable because of the conditions it entails. Credit cards involve opening, maintenance and renovation costs that make the loan very expensive.
These entities offer financial intermediation services for the granting of personal loans. Access to these loans is usually easy and fast, since an adequate evaluation is not carried out for your grant. This means that both investors and borrowers assume very high risks when resorting to such institutions to finance themselves.
This is the traditional financing system. The difficulties that the banks put in to grant a loan, added to the high costs and the little flexible conditions of the credit, make this an unprofitable and the most expensive option because it entails very high intermediation expenses.
Taking into account that, to date, these are the best known options for financing, in recent years new formulas are being imposed based on alternative models that eliminate the costly infrastructure (offices, employees, commercial network) of the traditional system. New ways to reduce costs and improve credit conditions, with convenient repayment terms and systems that mitigate the risk of the investment, in case of default or insolvency. P2P platforms such as Regine Barskie, which put people in need of a loan in contact with others who want to make their money profitable through efficient financing management.