With banks squeezed, where does one go for a loan – MoneyWeek

Cash’spieceisfullofgoodadvice,suchasdon’tlendtofamilymembers,astheyaretheleastworriedaboutpayingyouback;anddon’tapproachanyprofessionalbankerfriends,as“theyareprogrammedtoseecreditcrunchesasjoyousDarwinianfeaststhataretobewallowedintoextractmaximumpainfortheweakerparty”。

Buttherealeye-openerishisrevelationthatprivatebankerAlexanderHoare(chiefexecutiveofHoareCo。

)usesZopa。

Forthoseunfamiliarwithit,Zopaisanonline‘loancommunity’thatallowsyoutolendmoneytoindividualborrowersatinterestratesthatmightjustenableyoursavingstokeepupwiththeever-increasinginflationrate。

Now,it’sallrightforMrHoare–afterall,theheadofaprivatebankshouldbeamplyqualifiedtojudgethequalityofthepeoplehe’slendingto–butI’mnotconvincedit’srightforeveryone。

Presumablythesepeoplehavebeenrejectedforaloanbytheirlocalhigh-streetbank,sowouldyoureallywanttolendtothem?

Butthenagain,thebankshavehardlybeenmodelsofprobitywhenitcomestolendinginrecentyears,whichisthemainreasonwe’reallfeelingthepinchrightnow。

Andnotsolongago–justbeforehe‘invested’ahugepileoftaxpayers’hard-earnedcashintothemostdysfunctionalbankintheNorthernhemisphere,infact–ChancellorAlistairDarlingwassayingthatweneededtoreturntogoodold-fashionedbanking。

SomaybeaZopa-styleforumthatallowslenderstovetclientsonaone-to-onebasis,withouttheoptionofsellingthatloanontosomeoneelselater,isabusinessmodelthatourbeleagueredbanksshouldbepayingcloseattentionto。

IfyoudodecidetogoonZopa,awordofadvice。

JustbewaryofanysobstoriesfromformerCitytraderslookingtoraiseafewthousandforthenextmortgagepaymentbeforethebaillifsknockdownthedoorofthepied-a-terre。

Afterall,lookatwhattheydidwiththelastlotofmoneytheyweregiven…

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