How to Build a Good Relationship with Your Licensed Money Lender
How well you get along with your licensed money lender generally makes all the difference when borrowing a personal or business loan.
Mainly, building a good relationship with your lender has everything to do with backing your interactions with respect, trust, and clear communication.
Therefore, if you have a licensed moneylender with whom you are dealing in Singapore you need to know how to create and nurture a long-term relationship. In this post, we’ll explore ways you can have a good, healthy relationship that will benefit you and your moneylender in the long run.
Begin with Honesty and Openness
When you visit a licensed money lender, it’s crucial to be transparent about your financial situation, the loan’s purpose, and the repayment plan. Licensed money lenders will only assist you if they understand your circumstances, which shows trust and respect.
For instance, if you have already spent the money on a surprise bill. Tell them that. If you are entirely ignorant about how much time you have to repay the loan, tell them so.
Truthfulness allows your money lender room to create a lending agreement best suited to your present circumstances without committing both of you to undesirable financial risk. Importantly, if you struggle to be open to your money lender, remember they are your money partners who want to help you succeed.
Be Aware of the Terms and Conditions of the Licensed Money Lender Loan
Before signing any document, take a moment to read through and familiarize yourself with your loan terms and conditions.
Licensed money lenders in Singapore must adhere to strict guidelines under the Ministry of Law’s supervision. Therefore, it’s always your responsibility to understand and agree to the terms and conditions, which empower you and ensure you have control over your financial commitments.
Importantly, ask if something on the contract is unclear. A quality lender will have no problem clarifying the interest rate, loan duration, and fees. This way, you won’t be so surprised later on, which is why you and your lender are equals.
Communicate Proactively With Your Licensed Money Lender
Life can be unpredictable, and sometimes things don’t go as planned. If you face difficulties repaying your loan, don’t wait until the last minute to inform your money lender. Reach out as soon as possible and explain the situation.
Most licensed money lenders are willing to work with borrowers to find a solution, whether adjusting the repayment schedule or offering an extension.
Notifying them of any issues beforehand shows them you are thoughtful and willing to do your part. Also, it allows them to treat you as a reliable borrower, which will come in handy if you need to borrow money from them again at some point in the future.
Treat It as a Partnership
A money lender is a service provider and your business partner. Treat them like partners. Show your gratitude to them by writing a thank-you note or referring family and friends to them.
As you do all that, remember to treat your lender respectfully. Importantly, hold firm on your interest when your lender is uncooperative or unreasonable. Good communication and respect for each other will make a healthy partnership.
Set a Track Record of Reliability
The best way to have a healthier relationship with a professional money lender is to be an upright borrower. For instance, pay the loan repayment on time, be honest about your circumstances, and refrain from over-borrowing money.
In the long term, this will earn you credibility and trust, thus resulting in more beneficial terms of the loan or loans for higher amounts of money in the future.
Mainly, think of it as a credit rating. As your ratio is improved, your lender will regard you more. And that is a major benefit in the unlikely event that you ever need to borrow funds in future.
Final Thoughts
Having a positive relationship with your licensed money lender is not only getting the cash you need. It is about creating a long-term partnership for your overall financial success.
Lastly, you have a reputable money lender you can go to at any time for guidance on navigating the highs and lows of finances in life.