Getting a loan is a popular choice nowadays. An individual may choose to file for a loan when their business needs funds, working capital, or extra cash to finance uninvited expenses.
This is mainly faced by small business owners.
Do you own a small business? If so, you probably know how difficult it is to get a business loan from a bank or other financial institution. Now small businesses should consider borrowing directly from lenders. But why? Business owners seem to rely solely on traditional lenders, but there are many reasons why working directly with a lender would be a viable option for you, especially when applying for a short-term installment loan.
Want to know some of the benefits of borrowing directly from a lender? If so, here’s something:
Flexibility plays an important role when you have to start working directly with lenders. Direct lenders are more flexible when it comes to loan terms because they know exactly what you need when you start working with them. So, they make the best packages and products that meet your needs.
In general, direct lenders are more supportive of their interest rates. The rule of thumb is that the better the credit score, the better the chances of getting a loan approved. But even if you don’t have a good credit score, direct lenders can find a way to meet your current requirements for a loan.
2. Easier loan approval
Have you ever wondered why big banks and financial institutions are not interested in lending to small businesses? This is because the returns associated with small business loans are not eligible and put them at risk. However, direct lenders do not think this way, which makes it easier for you to get financial benefits directly from lenders. A direct money lender will be more cooperative and help you grow your business by offering you better interest rates.
3. No big down payment
Almost all banks and financial institutions require a large down payment before agreeing on loan repayment terms. This is not possible for small businesses because most of the time they do not have the capacity to make large down payments. Generally, large businesses do not require large down payments. Therefore, large amounts of down payments are often avoided, but rather it is guaranteed that they will be effective for small traders.
4. Quick cash release
Time is of the essence for many small business people who want to improve their business. However, traditional lenders do not realize this and many of them take too long to approve the loan and pay off the loan amount. On the other hand, direct lenders are mostly available and they run their loan business online. Also, as mentioned above, they do not require huge down payment. As a result, the loan transaction process is faster than conventional lenders. This way you spend less time on cash releases, which ensures that funds are available at critical times in the business.
5. One-to-one communication
Some banks may try to get you attention one by one, but you are more likely to get personalized attention directly from the lender. Many banks accept the request as a business transaction without the opportunity to build a mutually beneficial relationship with small business owners. Where, lenders directly will give you their own time to provide information about their loan package and give you a suitable solution that will help you run your business.
6. Trouble-free documentation
Whatever it is, paperwork is something that takes a lot of your time and effort. Loan documentation is not different from conventional sources, even without any guarantee of approval. But in the case of direct business lenders, the documentation required in the process is relatively low and only a few signed documents are requested to secure a loan.
Borrowing a loan is a real and common need for any business. Everyone can take a loan if they are able to repay it. However this has become a struggle for many small business owners as most banks and some lenders have failed to approve their applications. Here comes the direct lender as a savior. Whether there is flexibility with the terms of the loan or the huge down payment burden is reduced, direct lenders can simplify the process. Not only that, as has been explored above, easy loan approval with a painless documentation process and quick cash release at critical times is the main contract maker for selecting lenders directly on conventional borrowing channels.
And, forgetting the personal touch between the 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 borrowing directly from a lender! So what are you waiting for? Give it a try!