Direct cash loans are similar to cash advances 4 but there is never a broker involved as middleman 5 , hence the word “direct”. So this type of cash advances 1 are performed and agreed directly with a lender that can be a private financial institution, a university 2 , or even a college 3 . As direct cash loans are approved and negotiated with the applicants without a middleman 6 , process is faster 7 and prices are lower in general 8 . Not only for loans, but also other businesses as real estate, it is cheaper and faster to sell your home without using a broker 9 .
Direct cash loans are cash advances agreed between a direct lender and an applicant herein referred contractually as a borrower for a short-term loan with lean underwriting which is performed directly, thus without the intervention of third parties such as brokers or other financial institutions.
Direct cash loans, in comparison with indirect cash advances where brokers intervene, are distinguished for being faster in the application process, and not exposing your personal information to other companies than those involving brokers.
Your personal info is not sold to telemarketing companies and the reason is simple. Direct lenders are not interested in selling this data to a competitor.
Direct cash loans lenders handle the entire loan application, funding, and repayment process for all of its customers, what can be done quicker than with a broker.
Direct loans are always faxless, whereas with some brokers, you need to pass them the documents that they will handle to the lender for the underwriting process. This demands a lot of time and the requirement of borrowers like you is to have the money in the bank account within a business day.
There are many types of cash lenders. Most are licensed as either direct cash advance lenders or non-direct lenders. The difference between the two depends on whether or not they involve a third party that would take over the funding of your cash advance.
A direct lender is often licensed to issue mortgages in the majority, if not all, of the 50 states. Rather than that, many brokers are only licensed in a few jurisdictions, which might cause complications if https://signaturetitleloans.com/payday-loans-wv/ you apply for direct cash loans in a place where this broker is not licensed.
The cash loan broker is bound by the guidelines set by the individual lender of direct cash loans that are in the portfolio of the brokerage institution (the broker or a group thereof). For contractual reasons, the broker cannot waive certain requirements, discretionarily, in order to gain you as a customer.
Whereas direct cash lenders and brokers must abide to financial regulations, direct lenders can waive some requirements and fees, becoming therefore, much more flexible.
Each lender charges a fee for granting a loan, and therein is where the benefits lie. Nevertheless, brokers almost always charge larger costs than direct lenders, because we have to add the benefits for the broker. When considering whether to engage with a broker or a lender, it is critical to inquire about all loan generating costs before selecting one service provider over another one.
In direct cash loans, the borrower and the direct lender settle the terms and conditions of the loan almost immediately. Usually the loan is approved and the borrower accepts the terms of the financial instrument.
After that, the order is given to the bank of the lender to transfer the amount agreed to the checking account of the borrower. This happens the same day if you applied for the loan during the morning, or through a “next day ACH”.