You can order or avail of almost any service online these days, but when it comes to finance, you should be extra cautious when dealing with any sort of organisation who advertise themselves as private money lenders. There are plenty of legitimate New Zealand based online lenders, you just have to find the right companies when looking for small loans.
Here are some things to avoid when sourcing online money lenders.
- Risks
There is always risk when doing business online no matter what industry you are dealing with, this also applies to the financial sector. When borrowing money online you’ll encounter 2 major issues.
Fake Lenders > Although you’ll be the one trying to borrow money, you may come across a business who offers all sorts of amazing discounts before asking for a small fee while they approve your loan application. Once the loan application has been approved and you’ve paid the processing charge, the money will be sent to your account. Fake lenders use this ploy to secure payments and disappear the moment they’ve received cash. Ultimately, you’ve lost out and they’ve disappeared with your “fees”.
Extortionate Rates > It is important to shop around before you settle on an online money lender, do some research concerning rates and see what is normal for the specific loan you are interested in. If you come across a dodgy lender, they often provide loans at inflated rates, you end up paying way more than necessary for borrowing quick cash.
- Research
One of the best ways to avoid shifty online companies who offer quick loans in NZ is to do as much research as possible on potential money lenders before you decide to use them. There are plenty of online sites which provide recommendations and reviews about online money lenders. You can do a quick Google search and find several sites which contain a wealth of information about alternative methods of finance.
- Notice Red Flags
When communicating with an unknown money lender, watch out for tell-tale signs of deception. You’ll find that many con artists give themselves away because it is difficult to continuously lie while trying to keep their story straight, they eventually slip up and contradict themselves. One common way dishonest online money lenders will try to get your money is by lying about payments.
Fees Paid Upfront > This type of scam is used by multiple con artists in all kinds of industries. They present a reputable business on the outside, and once they gain your trust they ask for a payment in advance. They usually say that they need a small fee to process your application, once handed over, they disappear, along with your cash.
Unfortunately, you’ll come across con artists from all walks of life and the financial industry is no different. All you can do to safeguard your money is to research as many money lenders as possible before you agree to a contract, do some background checks, and make sure to watch out for red flags when communicating with an organisation.