Anyone who needs a loan goes to the bank, reveals their creditworthiness and quickly and cheaply gets the loan that they need for their lifestyle. At least that’s how it works 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 there you are faced with an abundance of administrative requirements.
Credit bureau information often leads to poor creditworthiness, the loan is a long time coming or becomes disproportionately expensive. Credit platforms like Bestbank can help in such cases. Because instead of the conventional loan, they make a personal loan possible without a bank and with less optimal Credit bureau entry.
What is a credit platform and how can it benefit lenders?
Credit platforms like Bestbank work according to the peer-to-peer principle. A peer is an equal: peers are partners, i.e. not one-sided business contacts and no bank customers who have to look at their bank advisors with awe. A credit platform like Bestbank mediates private loans between borrowers and investors, the so-called credit personal loan.
This credit without a bank is based on the fact that the bank is skipped to a certain extent as a middleman. Bestbank acts as an intermediary in cooperation with Creambank. The complex route to the bank and all administrative requirements are regulated by the intermediary Bestbank.
Because as an investor you can also grant loans to borrowers who, at first glance, do not appear to be ideal borrowers due to their Credit bureau scores. However, due to their business concept, they can convincingly convey that a contractual repayment of the loan and interest is not a problem.
For a conventional bank, however, this does not seem to be profitable enough, so that personal loan platforms like Bestbank offer the loan without a bank. This new form of loan also saves on agency and administration costs, which means that the return on corresponding loans can be significantly cheaper.
Benefits from the borrower’s perspective on credit platforms
The benefits of personal loans are even more pronounced for the borrower. It is often the Credit bureau entries that prevent you from getting a loan through a normal bank. But even below Credit bureau entries, normal banks are quite inflexible when it comes to structuring loan terms. One would like to offer customers loan variants (such as long-term expensive installment loans with high interest rates) that do not necessarily need them because they have more flexible repayment options.
The Bestbank online credit marketplace brings together borrowers and investors. In this way, the loan seeker can publish his loan project on the platform after the free registration. This should look as attractive as possible to arouse the interest of investors and thus convince them to invest in a personal loan.
The investor in turn decides on projects that suit him and invest his investment amount. Since there is less administrative effort and return requirements of a participating bank, the burdens from the loan without a bank are often significantly cheaper and offer the chance of a loan, even with Credit bureau entry.
Summary of the advantages of a loan without a bank:
A credit platform can therefore bring advantages for both sides of the loan compared to conventional financing or investment:
- Investors can generate a higher return, but this is also associated with a certain higher risk.
- Investors can deal much more directly with the implementation of a loan request. You get comprehensive information about what a potential borrower is up to with his loan.
- Borrowers get personal loans after traditional banks have rejected them as customers.
- Borrowers have the option of getting a loan, even though their Credit bureau entries or Credit bureau score are very unfavorable.
- Borrowers get loans that are more flexible and cost-effective than loan contracts at a conventional bank.
Credit platforms such as Bestbank are an interesting way to anchor the peer-to-peer principle in the economy. Given the success of peer-to-peer Internet offerings such as personal loans and in many other areas (lexica, auction platforms, social networks, parts of long-term consumer goods), credit platforms can also help to reduce dependence on withdrawn business solutions.