Home » Things to Look for Before Approaching a Hard Money Lender in Singapore
Money Lender in Singapore

Things to Look for Before Approaching a Hard Money Lender in Singapore

by aerocreditsg

There are things to be done (financially), but your pocket is not on your side at the moment.

Who is making a run at you? You’ve done your homework, are prepared with your financial records, and have located the investment of your dreams, but how do you choose which private money lender Singapore to put your faith in?

The following traits will help you identify the lender who is best for you:

Funded Hard Cash Loans & Default Rates:

There is less red tape involved in applications and financing quantities since a hard money loan is sponsored by a private lender rather than a bank. This has two sharp edges. Private money can move without many regulations, which benefits borrowers.

For instance, they use this to help borrowers fund deals quickly since they can provide funding within 48 hours of approving your application. However, some take advantage of uninformed borrowers by using less oversight.

It’s crucial to understand a hard money lender’s loan default rate as well as how many loans they have backed. A high default rate indicates poor or unscrupulous underwriting practices on the part of the lender.


One of the most crucial indicators of a hard money lender’s underwriting standards and level of customer service is undoubted whether or not they are a local business. This is because local lenders need to be familiar with your real estate market.

A local money lender online will not only have expertise making loans in your area, but they will also likely be better able to underwrite your asset with the activities of your particular market in mind. You will gain a lot from this as an investment.

Due to better underwriting accuracy, borrowers of local lenders often have a lesser likelihood of defaulting on their loans. Local lenders are also more likely to care about your success personally and be able to provide you with more individualized attention than lenders from other states.

Reliable and at Standard Rates:

Time truly is money, as the adage goes. You shouldn’t have any trouble getting a hold of your lender, having draw requests fulfilled, or getting general answers to your inquiries. You can miss out on a home in today’s market if you can’t secure finance promptly.

Utilizing hard money has several benefits, one of which is the potential to close rapidly. Your “opportunity cost” may be rising, in which case you would wish to search for another lender.

Unusually high loan rates (i.e., interest rates of 15–18%) are another sign to look out for. A loan-to-value (LTV) basis is used for hard money loans when lending on foreclosed properties. Lenders often impose a 12% interest rate and 2-4 loan origination points.

Additionally, choosing a lender is not a decision that should be made lightly as with any other financial choice. Your lender should have the expertise (at least a few years in operation) and be ready to give you references and testimonials from previous customers upon request.

Who Can Apply for Personal Loans from Private Moneylenders?

People with terrible or no credit histories, no bank accounts, excessive debt, and those who can no longer obtain credit from their banks are often the ones to whom moneylenders lend money.

These may also include those who don’t have family or friends who can lend them money. Consequently, turning to a lender is their final resort.

Moneylenders have prospered throughout the history of money lending by preying on gullible people who have racked up huge debts.

Banks Vs Private Moneylenders

Here are some benefits and drawbacks to take into account if you’re trying to decide if it makes sense to borrow money from a bank or a private lender for a personal loan or a business loan for your start-up:

Everyone favors bank loans when taking out loans since the interest rates might sometimes be lower. But it’s also critical to comprehend the rationale behind banks’ reduced rates.

This is because retail consumers retain sizable sums of money in their checking and savings accounts, making it very convenient for banks to access those cash for lending.

On the other hand, private moneylenders must either obtain capital from investors seeking respectable returns or from other banks and financial organizations that lend these private lenders capital at rates greater than it costs them to acquire that capital.


There are several ways you might claim the credit. Banks are often the safest alternatives, but some requirements must be met by the individual. Moneylenders are another choice, although they are typically seen as a last resort. Financers have a negative perception of moneylending. But for individuals who are unable to obtain funding through banks, it may be a decent choice.

Related Posts

Leave a Comment