If you need a loan, you can go to the bank, reveal your credit rating and get the credit you need for your lifestyle quickly and cheaply. That’s how it works, at least in theory. In practice, however, it looks a little different for most loan seekers. Getting money is often not as easy as you think. In reality, it looks like this: You go to a bank and you are confronted with a wealth of administrative requirements. Often a Schufa report leads to a bad credit rating, the credit is slow or becomes disproportionately expensive. Credit platforms like auxmoney can help in such cases. Because instead of the conventional loan they make a personal loan without bank and also with less optimal Schufa entry possible.
What is a loan platform and how can it be beneficial for lenders?
Credit platforms such as auxmoney operate according to the peer-to-peer principle. A peer is a peer: peers are partners, not unilaterally dependent business contacts, nor bank customers who need to look respectfully at their bank advisors. A loan platform like auxmoney arranges private loans between borrowers and investors, the so-called credit personal loan. This bank-less loan is based on the fact that the bank as an intermediary is skipped to some extent. auxmoney acts as an intermediary in cooperation with SWK Bank. The complex route to the bank and the entire administrative requirements are regulated via the middleman auxmoney.
Because as an investor, you can also grant loans to borrowers who, because of their Schufa score, do not seem ideal borrowers at first glance. However, based on their business concept, they can convincingly convey that a repayment of the loan and the interest according to the contract is no problem. For a traditional bank, however, this does not seem profitable enough, so private lending platforms such as auxmoney offer credit without a bank. In addition, this new form of loan will save on brokerage and administrative costs, which can make the return on such loans significantly cheaper.
Advantages from the point of view of the borrower on credit platforms
For the borrower, the benefits of personal loans are even more pronounced. Often it is the Schufa entries that prevent you from getting a loan through a normal bank. But even below Schufa entries normal banks are quite inflexible when it comes to the design of credit conditions. One would like to offer customers credit options (such as long-term expensive high-interest installment loans), which they do not necessarily need because they have more flexible repayment options.
The online credit marketplace auxmoney brings together borrowers and investors. The loan seeker can post his credit project on the platform in this way after the free registration. This should be as attractive as possible to attract investor interest, convincing them to invest in a personal loan. The investor in turn decide on projects that appeal to him and invest his investment. Since there is less overall administrative burden and yield requirements of a participating credit institution, the debits from the loan without bank are often much cheaper and offer the chance, even with Schufa entry, on a loan.
Summary of the advantages of a loan without bank:
A loan platform can thus bring advantages for both sides of the loan compared to conventional financing or investment:
- Investors can generate a higher return, but with a higher risk .
- Investors can deal much more directly with the implementation of a loan request. You will receive comprehensive information about what a potential borrower has in mind with his loan.
- Borrowers get personal loans after conventional banks have rejected them as customers.
- Borrowers have the opportunity to get a loan approved, even though their Schufa entries or the Schufa score are very unfavorable.
- Borrowers get loans that are more flexible and less expensive than loans from a traditional bank.
Credit platforms such as auxmoney are an interesting way of anchoring the peer-to-peer principle in business. Given the success of peer-to-peer Internet offerings such as personal loans and in many other areas (dictionaries, auctioning platforms, social networks, parts of long-term consumer goods), credit platforms can also help reduce reliance on aloof business solutions.