3 Background Checks of Lenders Founders Bases and Reviews

Created: 2016-10-17 07:00:00

A lender will almost always conduct background checks of borrowers. As a borrower, you have every right and you should conduct a background check of the lenders you consider. There are sharks in the UK apparently offering smart loans that don’t have any requirement to conduct background checks of borrowers. Borrowers too don’t bother with such an exercise to know who the lenders are. Such approaches are a recipe for trouble.

The first background check you must conduct pertains to the history of founders. Just as you would learn the history of the company or the lender as an organisation, you must also check who the founders are, what they have done over the years, what kind of expertise or experience they have and only when you are satiated should you proceed. Many lenders will not make public the exact people who are investing in the lending business. In such cases, focus on those who run the business.

Check out the experience of the chief executive or the managers and loan officers. The more you know about the people, who run the business, the better you can understand them.

Check their bases. There are many companies that do not have physical bases. If you are fine with such lenders, then go ahead. But if you want a lender to have a physical base, then you should check out if they do have registered business addresses. Many lenders are omnipresent online and they have many bases across the UK.

Finally, read as many reviews as you can about the lenders. The people who have dealt with the specific lender in consideration will always know better and you would always get a fair understanding of what your prospects are and if you should deal with the lender at all.

Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk