Alternatives to obtaining loans are essential for two main reasons. Firstly it offers more flexibility, allowing borrowers to freely choose where to borrow from. This is especially useful for people with bad credit, since they will have other options rather than checking lender after lender. Secondly, even if an individual is eligible for a loan, they still might want to consider the other alternatives first. Loans are still loans, in the sense that they carry interest rates. No matter how low it is, ultimately the borrower will have to pay out more than they have borrowed. Simply put, even if you can easily obtain a loan, you want to borrow only the minimum and save where you can.

First Alternative: Friends and Family

The first choice is the simplest. When asking family and friends, you won't have the pressure of defaults or harsh repayment plans. You also won't have an interest rate to worry about. You will gain flexibility like no other, and this "loan" can be approved for any reason. The only downside is that depending on the financial situation of your family or friends, they might not be able to spare too much.

Second Alternative: Talk with Your Boss

The second option is talking things over with your boss. You might be able to obtain a loan from your company, or get a payment in advance. This is especially effective for long term employees. The repayments can even be based off a fraction of your pay if needed. Furthermore this will also keep interest rates to a minimum, if any were to apply at all.

Third Alternative: Bad Credit Loans

This third option is only open to those who are getting declined for bad credit. What people find nearly impossible to obtain from an average lender, they could easily obtain it with a bad credit loan specialist. For those who are too ashamed to even show their credit record, payday loans or cash advance loans can provide a few hundred dollars without a credit check. They are a temporary solution since the interest rates are high, and they are usually required to be repaid within the next two paychecks. Their greatest traits are their speed and convenience.

Fourth Alternative: Secured Business Loans in Australia

Business loans are everywhere in Australia, and most of can be worth your while if you have a valuable asset as security. Secured loans are also an alternative to bad credit loans, since the application will take into account the value of the secured asset as well. While the interest rate is reduced and the service is speedy, keep in mind that your lender is able to repossess your secured asset should you fail to repay the loan.

These are only some of the options available to you aside from visiting your average everyday lender. All it takes is a little creativity and you can easily find other sources of funding elsewhere. A lot of the time alternate sources will prove to be more useful, offering either more flexibility or reduced rates, if not both.

About Author / Additional Info:
Find a bad credit specialist for a loan at http://www.mycashfinance.com.au/

Alternatively secured business loans can be used from http://www.smallbusinessangels.com.au/