For lots of small businesses, there will come a time when additional financing is required in order to grow. Traditional bank loans can take weeks, if not months, to be approved. Plus, many small business owners simply cannot meet the strict requirements of a bank loan.
When extra capital is needed, however, time is of the essence. This is why small business owners are frequently turning to loans from direct lenders to meet their needs.
In this guide, we not only explain what a direct loan lender is but also the key benefits of using one.
What Are Direct Lenders and How Do Direct Lenders Work?
Direct lenders provide finance to small business owners directly, cutting out the middlemen. Direct loans, therefore, allow business owners to go straight to the financing source, rather than meeting with lending institutions in person and waiting for several levels of approval to be granted access to their funds.
Direct lenders also manage the entire loan process from beginning to end. They are responsible for receiving, processing, and approving your application, as well as transferring your required funds.
Additionally, many direct lender loans for small businesses are accessible online, making it easier for business owners to obtain the capital they need to expand their operations from anywhere and at any time.
What is the Benefit of a Direct Lender?
When looking at direct lending vs traditional loans, there are actually several benefits of working with a direct lender. We’ve outlined each of these below.
Access to More Loan Options
By working with a direct lender, a small business owner has access to a wider range of loan options than they would at a brokerage or bank, which would only lend in accordance with internal policies. There is usually an overlay if a bank or broker lends outside of certain limits. Underwriting standards are more stringent with the overlay than they are with government lending programs.
Thankfully, direct lenders typically have few or no overlays to deal with.
Easier Application Process
Because direct lenders offer online business loans, you can submit your application from your smartphone, tablet, or computer from anywhere that has an internet connection. There’s no need to visit the lender in person, nor do you have to fill in lengthy documentation. The online application simply involves answering a few short questions about your business. Once completed, you can then submit your application and await a response.
Fast Approvals
When applying for finance from a direct lender, you don’t need to wait long for a response to your application. Most non-bank lenders give you an outcome on your application within as little as 24 hours.
This is a significant benefit over traditional lenders (such as banks), which often take weeks or months to evaluate your small business loan application. As such, it enables small business owners to take advantage of growth prospects by acting quickly.
Quicker Access to Funds
With speedy application processes and quicker approvals also comes fast access to your required funds. Direct lenders like Zinch, for example, deposit approved funds within your nominated bank account within just 48 hours.
Flexible Terms and Conditions
For business loans, large banks frequently have a single set of terms and conditions. But different small businesses have different needs. Direct lenders are not constrained by regulations and may be able to adjust loan conditions to fit your individual needs.
Small business owners now have access to a wide choice of interest rates and repayment terms as more direct lenders enter the market.
Can You Get Direct Lender Loans With No Credit Check?
It is possible to get loans with direct lenders that don’t require a credit check. Direct lenders often have a less stringent qualification process that doesn’t take a business owner’s credit score into account. To qualify for a small business loan from Zinch, you simply must have been in operation for more than 6 months and have over $10,000 in monthly sales.
Get Started with a Direct Lender Today
Traditional business loans are becoming harder for small businesses to obtain. However, direct lending loans provide a faster, easier, and more flexible option.
Contact us at (714) 500-6622 to learn more about your small business loan options with Zinch. You could qualify for up to $250,000 in just 24 hours.
