Believe it or not, but most times when we are in a financial dilemma, it is always a lender that appears as a savior. The only thing that could save us from money problems is a little extra money itself. And even in those times, not every lender is up and ready to help you, considering your credit history might not be so good, or your credit score is not up to the mark. Most times even banks refuse to assist in such tough times, when they see that the income of the person is barely much or if the borrower has nothing to offer as collateral.
In fact the only lenders that can help the borrowers are these two kinds of payday loan providers; direct lenders and indirect lenders. Since it is payday loans that we are referring to, they could easily be approached through a thorough research on net. But first let’s understand the difference between these two kinds of lenders:
1. Direct Lenders:
A direct lender is the one who lends cash to the borrowers himself without involving any middleman or a broker. When a person approaches a payday storefront or a financial institution directly to apply for a payday loan and get it from the same source then it is said to be a direct lender. Since they are almost as concerned about getting the amount back as the borrower is with returning it, they seem to sympathize with the borrowers and offers them some flexibility and various options that best suits their needs. Connecting with payday loan direct lender for acquiring the loan also makes the process faster of as it doesn’t have to go through one more channel before reaching the source.
2. Indirect Lender:
An indirect lender is the one who does not lends money himself but acts as a broker or a middle man between two parties. An indirect lender provides a connection between a borrower and a creditor. How do they benefit from this deal? They get compensation from the lenders when they provide them with a borrower. This doesn’t necessarily make them dangerous or untrustworthy, but they’ll do anything to make sure that the person is taking the loan, regardless of the act whether a person will struggle at the time of repayment or not. Some indirect lenders in their task of selling, even ends up misguiding the borrowers which cause a lot of problem for them later. However there are also many indirect lenders out there who have connections with some good lenders who provide good interest rates and flexible payday options.
Payday lending is a short term advance loan that offers instant cash to the borrowers with quick approvals, and easy application process. They could be acquired either through a direct lender or an indirect one. Since it is a loan without any background check or a credit checks, it is only for a short time period and has to be returned by the next payday of the borrower.