Direct lending, as the term implies is all about an individual or a business organization receiving a fund or loan from another individual or business organization with absolutely nobody else involved. Plenty of people are turning to direct lenders because of the many advantages that they offer.
Very Quick Approvals
In most cases you can get a direct loan with very little time spent as far as the approval process is concerned. Since there are no middlemen, so to speak, involved, an individual can access a lender directly and get the loan within no time at all.
How should you choose a direct lender?
Since there are plenty of direct lenders available today, your task of selecting the right one can become easy if you go to the Internet and read up on details about various lenders. Your ‘research’ should include aspects such as:
- the average time taken to approve a loan
- availability of an online calculator for loan amount and interest
- client references and feedback
- details on all terms and conditions including charges and
- information on every aspect pertaining to loans such as penalties on late repayment.
Difference from a Mortgage Broker
One of the common aspects that people often deal with when it comes to direct lenders is the difference between a direct lender and mortgage broker. Simply put, a mortgage broker may at times act as an intermediary between an individual or an organization and other lenders. Whereas a direct lender is an individual who deals with the borrower directly.
Information Sought from Direct Lenders
A direct lender will require financial information from an individual or business organization before a loan can be approved. In some cases, direct lenders will also overlook bad credit. So, in case an individual or business organization needs a loan but does not have a healthy credit score, direct lending can be a source of funds or finances.
Why go to a Direct Lender?
There are plenty of reasons why an individual or business organization may need money. Direct lenders are often sought after when an individual has a short-term need for funds and also is desirous of building a healthier credit score. It would therefore be an extremely good idea to check with the direct lender about all his terms and conditions and especially the length of the loan and the interest rates.
Who does Direct Lending?
There are plenty of individuals and organizations that have got into direct lending. For instance, universities may go in for direct lending programs so that their students get a wider range of loan choices and a simpler method to access funds. Depending on your need and ability to repay the loan, you can easily look for various direct lenders who can help you out accordingly.
At the end of the day, one of the biggest advantages offered by direct lenders is the speed with which they can prove your loan applications. This becomes extremely convenient because you can completely eliminate a middleman and deal with the lender directly and without any extra fees for a representative.