Types of non-bank credits


A non-bank loan is one that goes out of the banking circuit, that is, the achievement of an amount of money determined by alternative means to financial and banking entities . Throughout this post, we tell you examples of non-bank loans that you can go to for financing.

To start off on the right foot, here is a summary of 5 non-bank credits. Continue reading the post to learn a little more about each of them.

Non-bank loans for own financing

In the first place we find the non-bank credit related to our own financing or self-financing. This will be the first option for any company or individual (self-employed), since before requesting financing (and running with the consequent interests) an attempt will be made to make use of the greatest possible amount of own money.

Benefits of own financing as a non-bank loan

Benefits of own financing as a non-bank loan

This type of financing has the advantage that it will reduce financing costs and the procedures for obtaining it . Many of the companies that have the tap closed in the bank, go to self-financing, which often does not be able to make the expected investment by not having enough capital.

In addition, in order to subsequently access other sources of financing, considered as alternatives for private financing for entrepreneurs, it is important that a certain degree of economic involvement with the project by the entrepreneur is observed. This is observed, of course, if it has been self-financed or not.

Non-bank credit for financing Friends, family or acquaintances

Non-bank credit for financing Friends, family or acquaintances

Within these non-bank loans we could also include loans or donations that can be made by family, friends or acquaintances. In many cases where the company cannot have bank financing or self-financing, it would go to this type of financing.

They have the advantage that these are loans in which there is no need to have any guarantee of recovery . It can cause intrusion into the business of the person who lends the money but in return the interests are usually much lower or even do not exist .

Non-bank loan for an NGO loan

Non-bank loan for an NGO loan

Sometimes non-governmental organizations also offer non-bank loans to microenterprises, with an interesting interest rate and terms. This will vary depending on the type of project or company that is launched and its financing needs.

Non-bank credit for commercial credit

Non-bank credit for commercial credit

This type of credit is given when the supplier does not charge at the time that had been previously set and offers the customer the financing of the product he is selling, thus being able to sell the purchased merchandise and pay it to the supplier more comfortably. The provider will generally mark an interest rate for the deferral. They are usually extensions of 60 to 90 days. Not all suppliers can offer this option, it will depend fundamentally on the knowledge and trust in the Supplier – Client relationship and who has the strength of the negotiation.

Non-bank credit for Alternative Financing Platforms or Crowdlending

Non-bank credit for Alternative Financing Platforms or Crowdlending

Crowdlending platforms and especially in the case of Good Finance, offer non-bank financing to SMEs, freelancers and entrepreneurs with the peculiarity that it is private investors who lend their money in exchange for a return.

They are raised as the best private financing alternative for companies since they obtain greater advantages than those obtained with traditional banking operations.

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