Alternative & Flexible Loan Solutions
What it is:
These are non‑traditional loan or financing solutions designed for clients whose circumstances may not fit standard loan criteria, or who need more adaptable terms. This might include loans with alternative income verification, flexible repayment schedules, short‑term gaps, bridging finance, or loans from non‑bank / specialist lenders, or structured finance.
Pros:
- Helps clients who might be excluded by traditional lenders.
- Can address short‑term needs or cash flow issues.
- More customizable to the borrower’s situation.
Cons / Things to watch:
- Usually higher interest rates or fees, since lender takes more risk.
- More risk of unfavourable terms if not careful (e.g. hidden fees, more expensive overall).
- May require more frequent reassessment or renegotiation.
- Less regulatory protection in some cases (depending on the jurisdiction and lender).
| Feature | Details |
|---|---|
| Flexible documentation / eligibility | Might accept non‑standard income proofs, business income, freelance income, etc., or have looser credit score criteria. |
| Repayment flexibility | Features like interest‑only periods, repayment holidays, step‑up or step‑down repayments, or variable schedules. |
| Faster approval / less paperwork | Some alternate lenders streamline applications for speed, fewer requirements. |
| Loan types | Could include bridging loans, payday or cash advances (short term), peer‑to‑peer loans, asset‑based lending, specialised small business or startup finance. |