For better or for worse, the modern global economy is fueled by credit. At some point during their lifetimes, businesses and individuals will likely need a loan of some kind in order to complete various projects in a timely manner.

Even though the world’s economy is slowly coming back to life after the last financial crisis, there are still many individuals and businesses that find themselves with less than perfect credit scores. In addition to this, there are many others that have decent credit scores, yet still get turned down for loans due to prevailing financial conditions.

This situation has created a large number of people who find themselves unable to get a loan through traditional channels. Luckily, a market has emerged to serve the needs of these under-represented people. This article will take a closer look at this subject and will introduce three clever lending options to consider when all other doors may be closed.

1.PEER TO PEER LENDING

Peer-to-peer lending networks have grown in number and potency with regularity over the last several years. According to CNN.com, the clout of peer-to-peer lending has grown to the point where they now control a sizeable share of the market, and show signs of growing even larger.

With this method the networks act as brokers between people looking to get a loan and people looking to make loans. Typically, a borrower would list the amount they need to borrow, the terms they would like, and some personal information such as income and job status.

Individuals from the investor pool would then look over the various loan applications and decide which ones they would like to fund. Once the funds are provided and the network has taken a small fee for administrative costs, the deal is done and the individual has their loan. This unconventional yet clever lending option is opening doors for millions who would otherwise not have the opportunity.

2. SELLER FINANCING

In certain situations, borrowers may need a machine or a tool for business purposes, but may not qualify for a traditional cash loan. In situations like that, a clever lending option that many have take advantage of is called seller financing. With this method, the seller of a good or service would extend financing to their customers directly without the intervention of a bank. According to Forbes, This allows both the seller and the borrower to bypass the traditional credit bureaus and that makes credit available to those who would not ordinarily qualify.

3. SOCIAL LENDING CLUBS

This method is a new twist to a very old idea. With these cash clubs, a group of people would contribute a fixed amount to a pot on a weekly basis or at an interval of your choosing. Periodically, one member of the group would get the entire pot. The funding cycle would begin again, and after next payout a different member would get the contents of the pot. This is an easy way to leverage the power of personal networks for the gain of all involved.

Times are indeed tough and many people find themselves in dire financial straits. That said, those that go the extra mile and seek out unconventional loan opportunities are often well rewarded for their efforts.