Getting a loan is a popular choice nowadays. An individual may opt to file for a loan when they need funding for their business, working capital, or need extra cash to finance uninvited expenses.
This is majorly faced by small business owners.
Are you a small business owner? If yes, then you might know how difficult it is to get a business loan from banks and other financial institutions. Now Small business owners should consider taking a loan from a direct lender. But why? It seems like business owners only depend on traditional lenders, but there are a lot of reasons why working with a direct lender will be a worthy option for you, especially to applying for short-term installment loans.
Want to know some benefits of taking a loan from a direct lender? If Yes, then here are some:
1. Flexibility
Flexibility plays a crucial role when you have to start working with direct lenders. Direct lenders are more flexible when it comes to loan terms because when you start working with them they know better what you need. So, they tailor the best packages and products that fulfill your needs.
Commonly, direct lenders are more cooperative when it comes to their interest rates. The rule of thumb says, the better the credit score better the chances of the loan approval. But even if you don’t have a better credit score still direct lenders can find a way to work out your current requirement for taking a loan.
2. Easier loan approval
Have you ever thought about why big banks and financial institutions are not interested in giving out loans to small businesses? It’s because the returns linked with the small business loans are not worthy and expose them to risk. But, direct lenders don’t think this way, which makes it easier for you to get the help of financial allowance from direct lenders. A direct money lender will be more cooperative and will help you to raise your business by providing you with better interest rates.
3. No large down payments
Almost all banks and financial institutions need a large down payment prior to they agree on repayment terms. This is not feasible for small businesses because most of the time they do not have the capability to make big down payments. Generally, direct business does not require big down payments. Therefore, often the huge amount of down payments are avoided, rather it is made sure that those will be workable for the small business people.
4. Rapid cash release
Time is instrumental for many small business persons who want to keep their business flourishing. But, traditional lenders do not realize this and many of them take too long to approve the loan and release the loan amount. On the other hand, direct lenders are mostly available and run their lending business online. Also, as mentioned above, they don’t need huge down payments. This results in the loan transaction process being faster as compared to traditional lenders. This is how you spend less time on cash release, which makes sure that the business has funds available at crucial times.
5. One to One Communication
Some of the banks might try to give you one-to-one attention, but there are high chances that you will receive personalized attention from the direct lender. Many banks accept the request as a business transaction rather than giving a chance to develop a mutual understanding relationship with the small business owners. Whereas, direct lenders will give their own time for providing you with information about their loan packages and give you a suitable solution that will help you to run your business.
6. Hassle-free documentation
Be it any task, paperwork is something that consumes a lot of your time and effort. Loan documentation from conventional sources is no different, that too without any guarantee of approval. But in the case of direct business lenders, documentation required in the process is relatively way lesser and only a few signed documents are requested for securing a loan.
Takeaway
Taking a loan is a genuine and common need for any business. Everyone can avail of a loan if they are capable of repaying it. Though it becomes a struggle for many small business owners as most of the banks and some lenders failed to approve their applications. Here comes the direct lender as a savior. Be it having flexibility with loan terms or easing the burden of huge down payments, direct lenders can simplify this process. Not only this, as explored above, easy loan approvals with a painless documentation process and quick cash release at critical times are the major deal-makers for opting for a direct lender over conventional loan availing channels.
And, not to forget the personal touch between two business parties is always a plus for any business activity or transaction. This is only possible with a direct lender!
Now you know why you should consider taking a loan from a direct lender! So, what are you waiting for? Go try it out!
Read more:
WHY YOU SHOULD CONSIDER TAKING A LOAN FROM A DIRECT LENDER?