There are times when a mediator is good to use in mediating a problem. But when it comes to business transactions about loans, one best way to save money is deal directly with the direct lender. If you are a buyer, negotiate directly with the seller without a broker.
Who is a Direct Lender?
In a payday loan transaction, a company or an individual that manages their own money to be loaned to borrowers in the form of payday loans is called a direct pay advance lender. He receives cash directly from his clients and pays out directly to them covering the proceeds of the loans they applied.
Faster and Cheaper
A transaction with a direct lender is processed faster than that with an indirect lender. This is because the latter is only a broker. The loan transaction negotiated by the borrower through an indirect lender is costlier if compared to that were filed with a direct lender.
Easy to Get in Touch
A direct lender can automatically answer a query from the borrower. This is not the case if you work out a loan with an indirect lender. Their answers will depend on the information the direct lender passed on to them.
Both direct and indirect lenders are further classified into online direct/indirect lenders and offline direct/indirect lenders. Offline lenders are those who do business on their typical bricks and mortar offices.
Meet Face To Face
You can meet and discuss your loans if you need a loan from direct lender. On the other hand, the online lenders are not visible. They have virtual offices that have no physical existence. You cannot see their faces except when you talk with them via web cams. But most of the time during the loan process, your only contact with them are the websites they maintain on the Internet.
Who do You Prefer to Deal with?
The borrower has the final say when it comes to the company he would like to deal with. It does matter most if he chooses the offline lender over the online lenders. Both lenders require the same set of documents and only differ in their approach an application procedure. While online processing done by online lenders assures faster service, the service offered by the offline lenders cannot be discounted.
Avoiding Internet Scammers?
Some borrowers are more at ease when they see the product they are paying for. They can talk and see the real people behind the desk of offline vendors. This is not the case for online lenders. There are still doubts in their minds until the loan process is completed culminating in the deposit of the proceeds of the loan. You cannot blame some borrowers due to a number of scammers on the internet.