Borrowing money is usually necessary when a household wants to carry out a project. However, it is not mandatory to go through a bank to finance your project and there are alternatives for borrowing money without the endorsement of a financial institution. Find out in this article, how to borrow without a bank account.
Borrow without going through banks
Financing a project generally requires financial resources commensurate with the project. However, sometimes it is necessary to borrow money in order to make the project a reality. For this, there are several ways of doing things such as requesting a banking organization in order to make a bank loan. For more details, click here now . However, this type of loan requires a favorable situation for repayment but also involves an interest rate and various ancillary costs thus increasing the cost of credit. In order to avoid these costs, there are other types of financing to finance a project : • The loan between individuals
• Solidarity financing
• The last crowd
How to borrow without a bank ? Borrowing without a bank requires proper information on project financing such as those mentioned above. Thus, the loan between individuals is a solution which is little favored by borrowers but remains a financing option. Its operation is modeled on that of the bank loan but leaves the two parties to agree on the conditions of the loan as well as its repayment. As it can be obtained from family, friends or associations, it is still advisable to formalize this type of loan in order to avoid any incident during the repayment of the latter.
Use solidarity and participatory financing
Apart from these methods, the borrower can have recourse to solidarity financing. This type of funding can be managed by associations allowing individuals to use their savings to finance certain local projects. Interest rates are generally low, but the project must appeal to investors, which can be difficult with a personal project. The borrower can also use crowdfunding. Also called crowdfunding, this type of funding allows many individuals to participate within their means in one or more projects posted on different funding platforms. Crowdfunding can also be applied in parallel with the two other types of financing, which are loans between individuals and solidarity financing in order to increase the chances of success of the project.