Direct loan lenders
Finding direct loan lenders is important so that you can save money by paying lower interest rates with direct loans. Direct loans are any arrangement between the borrower or lender. Direct lenders could be banks, non-traditional lending institutions or the government.
What Is a Direct Loan?
Direct loans are a loan between a lender (or borrower) and an individual, without the involvement of any third parties. Direct lenders can be banks, the government and other financial institutions.
If smaller banks or direct lenders are unable to approve a loan application, they will usually need to use third parties that have more resources. The cost of borrowing increases and you can get a loan with higher interest rates.
Direct loans are most commonly used to refer to student loans. It can be used to refer to any type of lending without a middleman, such as direct paydays and mortgages.
Why get a direct loan?
Direct loans typically offer interest rates that are lower than private student loans. The rate for 2019-20 on Direct Unsubsidized or Subsidized Loans was 4.53%. This is significantly lower than the 7.64% average rate offered by private lenders.
In conclusion, direct loans are generally more affordable and require less paperwork. You may be eligible for fixed interest rates, income-driven repayment plans, or direct loans that are based on your salary. This will ensure your budget is not affected.
What are Direct Payday Loans and How Do They Work?
Direct lenders are available if you’re interested in obtaining a payday loan. Direct lenders can offer payday loans directly without the involvement of third-party agents. The primary responsibility of third-party brokers is to connect buyers and sellers. A broker acts as a facilitator between buyers and sellers. The broker gathers the information of the borrower and attempts to find the best deal for them. In return, the broker receives a percentage from the loan amount.
Payday loans can be used to quickly solve financial problems. Payday loans can be a quick way to get money if you plan well. If the plan is not well thought out, payday loans can be a quick money injection that helps you get through tough times. Before you apply for a payday loans, make sure to get as much information about the terms and interest as you can.
Due to the possibility of late payments, it is important to have a plan to repay your loan to the lender and to look at the interest rates on any personal loans.
What are Direct Installment Loans?
Direct lenders can offer you an installment loan. This type of loan allows you to borrow a fixed amount and then repay it with interest over a specific time period.
Installment loans are typically paid monthly and because they have longer terms, the payments don’t usually stretch a budget. Borrowers can contact a lender directly for a lower interest rate and more favorable terms than a broker.
What are Direct Mortgage Loans?
There are two options when it comes to buying a house. You can either use the services of a broker to help you find the best lender or go directly to one.
A broker’s service is great for those who don’t have the time or patience to search for different lenders and options before applying. The broker will then do the research and provide all the information. Although brokers usually charge a percentage of the mortgage amount, they can simplify the entire process.
Direct lenders are financial institutions or banks that determine if you are eligible for a loan. If you are, they will issue a check. It is possible to compare the terms and benefits of different direct lenders so that you can choose the one that will best suit your needs. Direct lending is often quicker and more affordable than traditional methods because there is no intermediary.
What are Direct Federal Student Loans and How Do They Work?
To help students pay for college, the federal government offers student loans. The personal loans can be used by students as well as their parents. They usually have lower interest rates to make it easier for more people to get a higher education.
The William D. Ford Federal Direct Program is managed by the US Department of Education. It is currently the only US-funded program. Although they offer student loans at lower interest rates, many private direct lenders do not offer benefits such as consolidation or forgiveness plans.
A student’s school will determine the amount and type of loan. Direct student loans are one of the most common. Below are the different types of direct loans:
1) Direct Subsidized Loans
Students who have financial need can be offered direct subsidized loans. The Department of Education will pay interest rates for the duration of the educational program and six months after it is completed.
Students don’t have to take on debt while in school and can begin paying it off after they are done.
2) Direct Unsubsidized Loans
Students are eligible for direct unsubsidized loans regardless of their financial needs. Since the Department of Education does not cover this type of loan, the student must pay the interest.
Although the terms may not be as favorable as subsidized loans they still offer lower interest rates and are the most affordable.
3) Consolidation Direct Loans
Direct consolidation loans allow you to combine multiple education loans into one loan. You only pay one monthly payment. This makes repayments easier.
A long-term contract can be chosen so that you pay less each month. However, this will result in higher interest over the long-term.
4) Direct PLUS loans
Direct PLUS loans can be offered to professional and graduate students, as well as parents of dependent undergraduates to help with education costs.
These personal loans do not require financial need to be approved, but a credit check will be required. Poor credit history will reduce your chances of getting approved. If you are applying, it is important to establish a credit record in advance.
List of direct loan lenders
Each of the below direct lenders offers a variety of loan types, including student and personal loans.
LoanBuilder is a direct loan lender that offers a variety of loan products, including small business loans, equipment financing, term loans, lines of credit, and real estate loans.
The company’s online application process keeps things simple: You can apply for your loan in less than five minutes from the comfort of your home or office computer.
Once completed and submitted, LoanBuilder will help you understand what type of financing is best for your needs based on your financial situation.
LendingClub is one of the largest peer-to-peer lenders in the country, with more than $8 billion in loans. They’ve been around since 2007 and have a solid track record, having never failed to repay a single loan on time.
LendingClub is a direct loan lender, which means they lend directly to borrowers rather than working through third parties or other financial institutions.
This can result in lower interest rates for borrowers and higher returns for investors who purchase notes on their platform (more on this below).
Borrowers with good credit scores should find that applying for a loan from LendingClub is easy—the minimum score required for approval is 660, although this varies by state. The average borrower has an average FICO score of over 700.
SmartBiz is a direct loan lender, but they also work with third-party lenders. They are considered a hybrid lender because they fund loans directly and their network of lenders.
SmartBiz is one of the largest business lending companies in the U.S., so if you’re looking for financing for your small business, then this lender may be able,e to help you out!
SmartBiz offers loans ranging from $3500 to more than $1 million. Their lo1 million dollars:
- Business Line of Credit (LOC) – up to $500K
- SBA Loan – up to $2M
- SBA 7(a) Loan – up to $5M
Kabbage is a small business loan provider that offers loans of up to $offeringy is excellent if you’re looking for a loan with no set-up fees and competitive interest rates.
Kabbage also offers business owners the ability to get funded within two weeks (and sometimes even faster) based on their credit score and other data points, which can be accessed through the Kabbage website or mobile app.
If your business has less than $5 million in annual revenue and you don’t have any outstanding debt right now, this might be an ideal option!
5) Funding Circle
Funding Circle is a peer-to-peer lending platform that connects investors with small businesses needing loans. Funding registered as a financial institution under the Financial Services and Markets Act 2000, which means it meets all the requirements for being a regulated lender.
It’s also a member of the Small Business Borrowers Council, an industry body that aims to promote good practice among lenders to SMEs (small and medium-sized enterprises).
Fundbox is one of the direct loan lenders. Fundbox is for to small businesses who want to borrow money. They’ll give you a loan in as few as 24 hours, allowing you to access cash quickly and easily access some money.
Fundbox is also a fintech company. They’re all about innovation, so if there’s anything that could help your business improve its financial situation even more efficiently, they’ll find it,
And if you need funding for an idea or project that doesn’t fit the mold of their typical loans? No problem! Fundbox provides marketplace loans through their partners at Bizfi and Kabbage.
They believe every business deserves options tailored specifically for them, no matter how big or small their operation might be.
7) OnDeck Capital Inc.
OnDeck is a direct and small business lender, which means they provide financing for various small business types.
OnDeck offers term loans from $5,000 to $500,000 to businesses in the United States with as little as $100 in monthly revenue and no non-owner debt (such as credit cards).
OnDeck can help you get the working capital you need for your business by offering:
- Short-term working capital solutions (up to $250k)
- Long-term financing options with competitive rates and customizable repayment schedules
BlueVine is a business lending platform that provides working capital to small businesses. BlueVine is a direct loan lender, meaning it makes loans directly to you without going through an intermediary like a bank or credit union.
The company also acts as a marketplace lender, connecting entrepreneurs with lenders who can fund their business needs.
As of 2018, BlueVine had funded over $1 billion in loans since its founding in 2012 and had over 5 million users on its platform across the globe.
Lendio is also among the direct loan lenders and Lendio is an alternative to traditional banks. Business owners can apply either online or through the company’s mobile app.
10) CAN Capital Inc.
CAN Capital Inc. offers small business loans up to $250,000. This direct loan lender requires borrowers to have been in business for at least 18 months and generate a minimum of $50,000 in annual revenue (this can include sales, not just cash flow).
As with the other lenders on our list, CAN Capital Inc. will fund your loan based on your company’s creditworthiness rather than your financial situation.
11) Newtek Business Services Corp.
Newtek Business Services Corp. is a direct loan lender that offers loans up to $300,000 and makes business loans of up to $5 million available for purchase by investors.
This direct loan lender specializes in small business loans, with maximum loan amounts ranging from $5,000 to $300,000 depending on the borrower’s creditworthiness and industry type. In addition, borrowers can apply for working capital or other general purposes such as equipment purchases, inventory financing, and more.
12) Credibly LLC
Cred is a direct loan lender that provides business loans to small businesses. Credibly’s underwriting team evaluates the financial statements and other information you provide, and they decide whether or not your business qualifies for their loan program.
If approved, they then work with you to set up your payments based on a timeline that works for you. They’ll also help you determine what type of final fit your company best.
These lenders can help small businesses get started on their growth path by providing loans for working capital or equipment purchases (among other things).
13) Credit Ninja
Conclusion: We’ve compiled a list of 12 direct loan lenders to consider. Each has its perks, but we think Loan Builder and Newtek Business Services Corp. are the best options for most small businesses.
Both offer easy-to-use platforms and competitive rates, making them ideal choices for those who want to get their business loans quickly without any hassle or headache.