Finance is an essential tool that allows individuals to achieve their goals, be it starting a business, buying a home, or completing their education. However, the traditional way of securing financing through a bank loan often requires a guarantor, which can be a huge hurdle for many people to jump.
A guarantor is a person who agrees to repay the loan in the event that the borrower defaults, providing an assurance to the lender that they will get their money back. This requirement can be challenging for people who do not have a sponsor, such as young adults or those with small families.
Fortunately, in recent years, alternative financing options that do not require a guarantor have emerged, providing an easier way for individuals to obtain the financing they need. These options include peer-to-peer lending, crowdfunding, and online installment loans.
These alternatives allow borrowers to obtain financing of $60,000 without a guarantor, providing greater flexibility and independence.
In this article, we will delve into the concept of non-guarantor financing in more detail, explore the challenges of traditional financing modalities, we will also look at the impact that financing without a guarantor can have in the financial and business world, and how Al Raedah can help you in obtaining financing of 60 thousand riyals without a guarantor.
Challenges of traditional financing models that require a guarantor
Traditional financing models such as bank loans usually require a guarantor who is responsible for repaying the loan in case the borrower defaults.
While this requirement can provide reassurance to lenders, it is not great if you can’t find a guarantor.
This might include young people who are just starting out, immigrants without a secured credit history, or people who don’t have a large social circle. In these cases, obtaining financing through traditional methods can be difficult, if not impossible.
Furthermore, finding a guarantor can be a time-consuming and often inconvenient process. It may require borrowers to rely on friends or family members to ensure their financial stability, which can lead to strained relationships between them.
In some cases, borrowers may have to turn to institutions that guarantee them, which can add additional costs and fees to the borrowing process.
Moreover, banks and other traditional lenders may not provide financing to borrowers who do not have a guarantor; Because they see this as a risk. As a result, borrowers may have to resort to alternative financing options that may have higher interest rates or terms that are not very favorable to them.
Generally, the requirement of a guarantor can be a significant barrier for individuals seeking financing, and alternative financing options that do not require a guarantor may provide an easier and more flexible solution for such individuals.
The impact of financing guarantor-free financing on the economy
Financing without a guarantor has the potential to stimulate entrepreneurship and innovation, which could have a positive impact on the economy. By eliminating the need for a guarantor, alternative financing options may make it easier for individuals to access financing for their commercial or creative projects.
This, in turn, may create more opportunities for small or startup business owners, entrepreneurs, and innovators to pursue their ideas and bring them to market.
In particular, alternative financing options such as crowdfunding and peer-to-peer lending can help individuals access capital that they may not have been able to secure with traditional financing methods.
These options allow entrepreneurs and innovators to pitch their ideas to a wide range of investors or lenders, who can then provide financing in exchange for equity payments or as part of the profits.
By providing easier access to capital, financing without a guarantor can level the playing field for entrepreneurs and small business owners who may not have the same financial resources as larger corporations.
This, in turn, can promote competition and innovation across industries, leading to new products, services, and business models.
Moreover, financing without a guarantor may help promote financial inclusion, as it allows individuals who may have been excluded from traditional financing methods to access the financing they most need.
How does Al Raedah help business owners to obtain financing of 60 thousand riyals without a guarantor?
Al Raedah aims to provide technical financial support to the owners of small and medium enterprises and individual institutions by providing easy and flexible financing loans.
Al Raedah financing services are designed to suit the unique needs of each of the small and medium companies, taking into account the difference of each business.
Al Raedah Finance, as a direct lender, offers 60,000 riyals in corporate finance without a guarantor, enabling the owners of small and medium enterprises to serve the local economy, grow and achieve their commercial aspirations by providing appropriate financial solutions that reflect positively on their business with products that comply with Islamic Sharia regulations.
Al Raedah Finance was established to give every promising entrepreneur an easier way to obtain the best and various financing solutions, which gives you the most suitable solution to finance your business in the most convenient payment method for you through flexible payment solutions, and therefore our borrowers are not restricted to a fixed monthly repayment period. They can focus more on benefiting from financing to achieve goals and develop their business, instead of worrying about the method and mechanism of paying installments at the end of each month. Al Raedah Finance is known for both speed and high flexibility.
Why financing up to 60,000 riyals without a guarantor from Al Raedah may be most suitable for you:
- The speed of obtaining financing from Al Raedah, you can obtain financing within 5 working days.
- Al Raedah has a team trained in effective communication that is based on understanding, flexibility and cooperation from clients.
- The company provides financing solutions licensed by the Sharia Board.
- Al Raedah solutions are practical and detailed that address the challenges facing each business separately.
- Al Raedah provides technical financing solutions without complicated financial terms.
- Al Raedah requires fewer documents than any other competitor.
- Our financial solutions are always digital.
- Flexible payment mechanism through payment deduction, without fixed monthly installments.
- You can submit your application to the company online.
- Our financing operations are easy, with a quick response.
- Our procedures are simple and flexible.
Factors that impact borrowing
With Al Raedah, you can get a loan without a guarantor and without any fixed monthly payments or installments, as Al Raedah uses the deduction method to pay off the loan gradually.
The payment process takes place automatically, on a daily basis, in the form of a fixed and small percentage of the customer’s future sales, and therefore the customer will not be restricted to a fixed repayment period, which enables him to focus more on benefiting from the financing he obtained to achieve his goals instead of worrying about the method of paying the installments at the end of each Month.
The role of credit scores and how they affect a borrower’s ability to obtain 60 thousand riyals in financing without a guarantor
Credit scores play an important role in a borrower’s ability to obtain financing without a guarantor.
Credit scores from lenders are used to assess a borrower’s creditworthiness and to determine the risks associated with lending to them. Generally, borrowers with higher credit scores are considered less risky and are more likely to be approved for financing.
In traditional financing methods that require a guarantor, credit scores are often used as a means of mitigating the risk of lending to borrowers without a guarantor.
However, in financing without a guarantor, credit scores can matter more; This is because it serves as a basic indicator of the creditworthiness of the borrower.
Borrowers with good credit scores are more likely to be approved for financing without a guarantor; They may also get better lending terms, such as lower interest rates.
On the other hand, borrowers with poor credit scores may have difficulty obtaining financing without a guarantor. In some cases, borrowers with poor credit scores may still be able to obtain financing, but may have to pay higher interest rates or fees.
Alternative financing options such as peer-to-peer lending or crowdfunding may take a more comprehensive approach to assessing borrowers, by looking beyond just credit scores.
These platforms may consider factors such as the borrower’s income, employment history, or personal relationships when assessing creditworthiness.
This can help provide financing options to borrowers who may not have a strong credit history. But they have other strengths that make them good candidates for funding.
In general, credit scores play an important role in a borrower’s ability to obtain financing without a guarantor. Borrowers with good credit scores are more likely to be approved and may get better terms, while those with poor credit scores may face greater challenges.
How do you get financing without a guarantor from Al Raedah
If you own a business that is at least six months old and supports payment through points of sale, or if you own an online store, you may be wondering how you will benefit from Al Raedah’s support.
You are in the right place; Where you can get one of the leading programs in just a few simple steps:
- Visit the website, and choose one of the programs that suits you.
- Fill in the required form (it only takes a few minutes).
- Make sure to enter all data correctly, and attach all required photos and documents.
- After completing the application, an employee will contact you within a maximum period of 48 hours to present the offer with the best financing options that suit your project.
- Sign the final contract.
- After obtaining the final approval of your application, you will receive the amount allocated to finance your project at the predetermined time according to the established terms and conditions.
Conclusion
Overall, the emergence of non-guarantor finance represents a major shift in the way people access finance. It has the potential to provide greater access to financing for those who would previously have been excluded when looking to traditional lending methods.
However, it is necessary to consider the potential risks and benefits of alternative financing options before determining the appropriate approach.
Do you want to obtain financing of 60 thousand riyals without a guarantor and with attractive terms? Find out how we can help you.