Removing the middle man has tremendous benefits, but the greatest drawback is the lack of security. In traditional banking methods you are given a small interest on your savings/checking and the bank assumes the risk in lending to various credit lines. When you assume these risks by directly lending to someone you are putting your finances in jeopardy.
Spread your wealth
It is never a good idea to invest all of your capital in one area. This is true for lending practices within neighbor to neighbor lending companies as well. Dividing your investment with many different people reduces your risks and ensures the best possible return for your money. All loans with neighborlender.com are at the same interest rate so the difference is pure speculation and each loan must be approached with caution and trepidation.
Late charge helps protect your interest
In the event that a debtor can not or will not repay his/her loan a late charge of $100.00 dollars is added to the balance of the loan and the loan is sent to our collections department. We strive to maintain 100% loan repayment and will use legal recourse and report the default to the credit bureaus if collection attempts have failed. In the event that a debtor is late in repaying, (five days past the due date) a late charge will be added to the balance owing, with 50% of the late charge to be transferred to the lender at the time debt is finally repaid. Debtor will be responsible for any legal fees required to collect the balance in full.
Collection efforts
One of the benifits of non-compounding interest is the recoverability of your loan. A debtor may become overwhelmed if they feel that any amount they repay after collection is initiated will just be absorbed into fees and higher interest. This is not so with neighborlender, our flat fee attached to the remaining ballance, can be an effective tool in convincing defaulting debtors that any amount repaid will result in decreasing the amount owed; allowing the removal of any negative reporting on their credit reports. If all collection attempts have failed, the lender will have the choice of whether or not to leave the report on the offending debtors credit report.
Tattle tale
After five days past the due date, the lender may submit feedback that is attached to the debtors profile within neighborlender.com. This report will be shown every time he/she requests a loan or donation and will not be removed unless he/she is lent to again, in which case the last lender will get the last feedback report.
Ultimate risk
Neighborlender.com has no control over the abilities for the debtors to repay. In the event that no collection is possible the lender will not be able to hold Neighborlender LLC or any of its constituents liable for losses or damages past the responsibility of attempting collections and reporting to the credit bureaus. If all fails and no money is recovered the end result is no return, and you may lose your money.
Disclaimer: Neighborlender is not a credit counseling or debt consolidation company. We do not issue loans. We facilitate and connect individual to loan to individuals. All loans issued are the property of the issuing creditor. One loan may be owned by multiple creditors. A loan that has not been paid as agreed, will be subjected to collections and restitution may be collected through the individual purchasing the loan, by small claims or other legal means. All loans are subject to a late charge of $100.00 regardless of the amount, if late over five business days past the due date. TERMS & CONDITIONS
