Why you may avoid a broker and choose a private lender instead

 

Let's make this clear first. In this post, no attempt is made to create a 'versus' battle between the brokers and the direct lenders (aka private lenders). This post aims to state a few advantages of a direct lender over a broker service when it comes to borrowing unsecured loans/ personal loans.

Personal loans are also known as unsecured loans because you don't have to secure the loan with collateral, i.e. property or an asset such as your home or car. When it comes to brokers, you may have found them more in the field of mortgages. However, these professionals are also adept in helping you with personal loans, bad credit loans etc. They make searching and customising the loan easier for you.

Brokers are great. However, direct lenders may have greater advantages up their sleeves. In this post, we are going to look at a few things regarding it below:

• You Might Need a Lender for a Faster Loan

The plain reason for this is that direct lenders work directly with borrowers. Direct lenders are professional finance institutions that are designed to manage a loan application faster and better. It has its reasons, and they are:

·         You get to apply through a paperless application form

·         You can manage to apply fully online

·         The process has been made free from complexities by the lenders 

·         You can save time because the lenders do everything from the loan application to the verification process. 

With such assistance, getting a loan is easy within a business day. If you have emergencies or urgent funding for your business - or if you suffer from bad credit and need urgent help- you might choose no broker loans for bad credit. An instant decision can be made regarding this product with the help of direct lenders. 

• You Might Be able to Save Yourself from Loan Sharks 

Let's say you are trying to get a loan soon. Chances are you found a broker, didn't do enough research about the service and ended up falling prey to private loan sharks. 

Not offending brokers, fraudulent activities sometimes mimic brokerage or even any financial service to fool borrowers. Although broker organisations are safer in this regard than professional, direct lender services are made more authentic by safety protocols and cybersecurity. You might stay safe and stress-free by choosing a direct lender service. However, do not forget to make your research about the institution.  

·         You Can Get More Variety of Loan Products 

When you are looking for a customised loan that fits your needs, a common idea is to contact a broker. However, private lenders have more flexibility in this case. The simple reason is you can directly interact with the lender by visiting the lender's website and checking out the loan products it offers. Moreover, you might initiate a conversation with the officials of the organisation directly to understand and discover their loan products.

With a broker, you might not get the option of accessing various loans. Some brokers may only work with a few lenders, which might stunt the opportunities for you to get a suitable loan product. 

·         The Money Advantage 

While both direct lenders and brokers have fees, you need to pay both with a broker. It is simply because the broker will bring you to a direct lender. Eventually, you will end up paying for both. 

With a private lender, you pay nominal fees. Besides, a reputed lender organisation won't have hidden or extra charges. You might save money by choosing a direct lender. 

To Conclude

Although lenders are better than brokers in many areas, the latter has its own privileges. Find out your priorities. Understand your needs first. Then choose the provider that you think is comfortable to work with.