Direct Lender vs Bank: Who Is Better?

A direct lender vs Bank? Direct Lender is an independent financial institution that lends to individuals and small businesses, rather than banks or credit unions. They offer low interest rates and flexible terms, which means you can get the loan you need without paying any fees. In America alone, there are more than 3 million direct lenders, providing over $1 trillion in funding each year.

The best thing about direct lending? It’s fast! If you apply for a loan from a direct lender, it could be approved within 24 hours. And if your application isn’t approved, you won’t have to wait weeks for your money.

Direct lenders also allow you to take out multiple loans at once, so you don’t have to pay anything extra. For example, if you want to buy a business car, you can qualify for two loans: one for the down payment and one for the rest of the purchase price. You pay less interest on both loans, and you can still afford to make all payments on time.

Another great thing about using a direct lender is that you can save even more money by refinancing your existing loan. Refinancing means taking out a new loan with a different term (usually between five and ten years) or a lower interest rate. This allows you to stretch your original loan while saving on interest payments.

direct lender vs bank

For example, let’s say you already have a $10,000 car loan from a bank. Then you decide to refinance yourself into a $15,000 loan from a direct lender. This way, you’ll save $5,000 in interest costs that put more money in your pocket.

You may not think it’s worth applying for a second loan, but there are many reasons why it’s beneficial to do so. Here are just a few:

  • You can keep your business instead of having to sell it.
  • You can buy a larger property or more effective business equipment with less cash in advance.
  • You can use the money you would have paid in fees to invest elsewhere.
  • You can give your employees increases and bonuses.
  • You can save money on taxes.
  • You can start investing in yourself.
  • You can pay off your debt faster.
  • You can consolidate several loans into one.
  • You can pay for home improvement work, vacation and other expenses.
  • You can build up equity in your home.

The benefits of using a direct lender are numerous.

#Direct #Lender #Traditional #Bank
wendy encarnacion

Leave a Comment

Your email address will not be published. Required fields are marked *