You used to go to the bank for a loan as standard, but with the advent of the internet, the financial world has changed enormously. For example, non-bank financing in the Netherlands has increased sharply in recent years. According to research by Best Bank. This is in contrast to loans taken out with the bank. Smaller amounts in particular are more often arranged through non-bank loans. In this article we look at the differences between a bank loan and a non-bank loan and we list the advantages and disadvantages of both.
What is the difference between a bank loan and a non-bank loan?
A bank loan (or bank loan) is a loan that you take out with a bank. A non-bank loan is a loan that you take out outside the bank. This can take several forms. The most common non-bank loans in the Netherlands are: crowdfunding direct lending, lease and factoring. Many of these loans are offered online.
Bank loan benefits
When you take out a loan with the bank, a good look is taken at whether you can pay the loan. You know for sure at a bank that you do business with a reliable organization.
Benefits non-bank loan
There are several forms of non-bank loans that you can choose from. Usually the rules for getting a loan are smoother than at the bank and therefore it is often also a faster way of borrowing. You can often also take out these loans online.
Disadvantages bank loan
Your BKR registration will be looked at anyway and that can influence whether or not to grant a loan. The rules for applying for a loan from the bank are stricter than with a non-bank loan. Bank loans are often also more expensive than non-bank loans
Non-bank loan disadvantages
A non-bank loan is usually promised earlier than a bank loan. But this also means that you yourself have a greater responsibility for paying it back. At a bank there is a very good look at whether you can pay the loan, with a bank loan it is more likely that you will run into problems if you borrow too much money. But the biggest disadvantage of a non-bank loan is that so many scammers are active in this world. So you have to take a good look at who you are working with when taking out a non-bank loan.