COVID-19 pandemic hurt the economy globally. It resulted in entrepreneurs getting loans to keep their business afloat amid a crisis. Individuals also acquired loans to survive and secure emergency funds.
Unfortunately, applying for a loan through traditional lenders can be challenging. The application process is often confusing and intimidating. Banks also impose a specific credit score. The best alternative is applying through a direct business lender. They are often the best option for anyone seeking emergency funds. As banks retreated, direct lenders filled in the void.
Here are some practical reasons why you should apply for your loans through a direct lender.
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Other lending agencies have middlemen to help borrowers process the loan. Your application has to go through them before getting to the lender for approval, which creates extra steps in the application process. The process will also take more than a few weeks or more.
But, direct lenders have their in-house processing and underwriting staff. By applying through a direct lender, you’ll go through fewer people who can save your time. It will also make the process quick.
Applying for a loan through a direct lender will give you a more flexible option. Unlike direct lenders, other financial institutions don’t have underwriters. They can’t make independent decisions or offer any alternatives. Direct lenders, on the other hand, can waive fees or give discounts.
Getting loans through direct lenders is also practical because of their reasonable terms. They offer different loan terms depending on your financial situation. Although direct lenders cannot guarantee your loan, they will try all possible options. If you currently have a bad credit score, direct lenders can look for other options to make it work with you.
Whether you choose a direct lender or traditional lenders, you’ll have to pay specific fees. With other lending agencies, you will pay more since they charge extra fees for the middleman’s service.
Also, direct lenders are more affordable because of lower interest rates. Thus, you’ll have lower monthly repayments. Direct lenders also don’t have any hidden fees. You’re sure that you are not paying more than you should be.
Quick Cash Release
Traditional lenders leave longer processing time. They often release the loan longer because of the strict approval and manual process.
Meanwhile, most direct lenders operate online or through an app. A computerized system makes the loan transaction faster. You won’t have to wait as much, which is very beneficial in all aspects.
But, always remember to only transact with reputable online lenders. It would help if you evade fake and unlicensed lenders to avoid the risk of identity theft. Any illegitimate lending websites can use your information for illegal practices.
Businesses capitalize on time management. The more time saved, the more chance you’ll have to earn. Direct business lenders know and understand this. Thus, they often release loans faster than traditional lenders.
Other types of lenders are strict in document compliance. They also have excessive requirements. These factors make traditional lenders intimidating, especially to first-timers.
You have to file and submit the necessary documents on time. Late processing can affect your loan approval. You are also charged for extra processing fees if you submit beyond the deadline. It would help if you also avoided oversights or errors with your application. Any mistakes with your documents often result in loan rejection.
Direct lenders are more convenient because they need fewer documents. They only request the necessary papers like a signed contract to secure a loan. Lesser forms to fulfill will make the process faster and easier.
Direct and Better Communication
Most individuals apply for monthly installment payday loans through a direct lender (note that payday loans are not legal in all states). You can also apply for things like car loans. Aside from many loan options, individuals prefer direct lenders because communication is straightforward.
You can have direct access if you need to clarify anything about your loan. You will avoid any confusion because there’s immediate delivery of information. Open and transparent communication is essential in any loan process.
If you’re taking a loan for the first time, you want to understand how the entire system works. Thus, it’s best to work with direct lenders. Their knowledge and expertise can guide you in choosing a loan that’s best for you and your business.
Most direct lenders also offer a personalized consultation process. They are reliable insights that can help you with any financial struggles.
Anyone has the privilege of a loan as long as they are capable of repaying it. But, traditional lenders have a complicated application process that discourages many individuals. Direct lenders are a more viable option for many.
Direct lenders are more considerate and flexible. They also offer a shorter loan process and quick cash releases.