A direct lender is an independent financial institution that makes loans 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. There are more than 3 million direct lenders in the United States alone, and they provide more than $1 trillion in financing each year.
The best part of direct loans? It’s fast! If you apply for a loan with a direct lender, you could be approved within 24 hours. And if your application is not approved, you won’t have to wait weeks for your money.
With direct lenders, you can also get multiple loans at once, so you don’t have to pay anything extra. For example, if you want to buy a business car, you may qualify for two loans: one for a down payment and one for the remainder of the purchase price. You’ll pay less interest on both loans, and you’ll still be able to make all your payments on time.
Another great advantage of using a direct lender is that you can save even more money by refinancing your existing loan. Refinancing means getting a new loan with a different term (usually five to 10 years) or a lower rate. This way, you can stretch out your original loan while saving on interest payments.
For example, let’s say you already have a $10,000 car loan from a bank. You then decide to refinance with a $15,000 loan from a direct lender. By doing this, you’ll save $5,000 in interest charges, putting more money in your pocket.
You may think that applying for a second loan is not worth the trouble, but there are many reasons why it is beneficial. Here are a few:
– You can keep your business instead of having to sell it.
– You can buy a larger property or a more effective business team with less cash up front.
– You can use the money you would have paid in fees to invest elsewhere.
– You can give your employees raises 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 improvements, vacations and other expenses.
– You can build equity in your home.
The benefits of using a direct lender are numerous.
