What’s Really Fueling the New Social Lending Revolution?
Need a loan in an uncertain economy? Chances are good that you’ve got your work cut out for you. This is because a lot of credit sources have just dried up. Due to the global recession, lenders feel that it’s better to hold onto the money that they have, rather than try to go with something that’s going to going to be riskier than what they want to take on for their own shareholders and investors.
Yet for the average person, this means that they won’t be able to get the loan that they really need. There are short term loans out there, such as payday loans, but these address only short term problems. What if you wanted a business loan? Or a loan for a car so that you could finally go back to work and give your children a better life than they have now?
There needs to be a better solution. A different solution. A solution that will focus more on people than numbers. After all, do you really only want to be known by your credit score?
Of course not.
So the best solution is here already: social lending. Yes, lending is still a factor. But there’s something special about social lending. The things that are fueling the social lending revolution are varied, and you could ask 5 people their opinions and still get 5 different answers as to what makes it so special.
Here’s our answer; it puts the power back in your hands. You aren’t going to have to go to a bank and beg, or feel two feet tall when you get rejected. You’re going to be dealing with people that know where you’re coming from.
The Internet is a powerful tool in this way — no matter what you’re looking for, you can find it if you really look for it. Does this mean that you’re going to have no trouble at all getting your loan filled? Yes and no — it’s still a mixed bag. Because it’s based on what you put into it. If you don’t make the time to sit down and be honest with the community, you won’t get your loan fully funded. If you aren’t willing to take a little higher interest rate, you won’t get your loan fully filled. If you’re not honest about what you’re making, you will not get your loan fully funded. Yes, in the Internet age, someone can definitely find out whether or not you’re lying about your information! Just don’t do it, okay?
At the end of the day, you are part of social lending in more ways than one. It’s your desire for a better life that fuels social lending. It’s your passion for helping others that fuels social lending. Above all, it’s your hope for the future that fuels social lending. Going beyond the reasons why social lending exists, you should make sure that you are fully positioned to make the most out of social lending, whether you’re a borrower (link to my article on “3 Steps to Getting the Most out of Social Lending if you’re a Borrower) or a lender (link to my article “3 Steps… As a Lender”, same style)!