Online and Conventional Direct Lender Loans - How to Pick What’s Better-converted
                     Online & Conventional Direct 
Lender  Loans- How to Pick 
What’s Better
What to Choose between Online and Conventional Direct 
Lender  Loans
The terminology related to loans can get quite confusing and most books, websites and even vlogs  
tend to use industry jargons or vague wording to describe most terms. So to start of it, let’s first  
describe what is referred to, here, when we say “Direct Lender”, “Online Direct Lender” and  
“Conventional Direct Lender”.
When we say “Direct Lender”, we, in simplest English terms, essentially refer to an entity you can get  
a loan from, which shall be the entity that is giving you your loan money. No brokers, no third parties  
are involved in such a scenario and your loan is coming straight to you, with no entity making a  
commission on it.
What we refer to as “Conventional Direct Lenders” here, are lenders of loans from banks and loans  
from registered individuals/companies that can be availed through stores in your neighborhood,  
pawn shops, etc.
What we refer to as “Online Direct Lenders” here, are lenders that operate primarily online and are  
essentially non-institutional. Banks that can offer online disbursements of loans are excluded as their  
currently their online processes mostly tend to be an online-converted extension of the usual  
conventional process.
The main difference between what we are referring to as Conventional Direct Lenders and Online  
Direct Lenders, would be that one would have to step outside their house/office and submit some  
sort of paperwork or have a pre-existing relationship where the paperwork was done in the past,  and 
this also possibly shall add to the need for the borrower to look around store-to-store in the first  
place, in order to get the loan that they seek.
Now that that’s out of the way, let’s jump straight in.
Choose Bank Loans when there’s no hurry, Paperwork is not a problem and 
your  Credit Health is alright
Assuming that you’re not looking for a very short term loan, bank loans, bank loans could be the  
preferred choice. If you are looking for very short term loans, we cover that in the section where we 
 discuss payday loans.
It’s simple – unless you know the market, the safest bet in a loan is a bank loan, as long as you can  
take that option. The Conventional Direct Lenders include banks and non-bank lenders. But to get a  
loan from a bank, you need to be aware that these limitations almost always exist:
 Bank loans usually have long application processes and typically a fair amount of paperwork  
is involved at some stage. If you have an existing account with the bank, the paperwork  
might be lesser and in very rare cases, you might have a choice of an online process. Such a  
loan may tend to be more expensive than the typical bank loan.
 Bank loans also typically take days and sometimes even weeks for approval and then  
deposit.
 It’s almost always the case that you would for some reason or the other, have to drive down  
to the bank a time or two sometimes even more) for completing the loan  
application/process.
 If you have a poor credit score, you’re likely not simply be rejected for a bank loan.
 Loans form a bank without a collateral may be available only to people with a good credit  
score and good financial health.
The advantage of the bank loans is that the interest rates are very frequently lower and that banks  
are usually the most reliable companies as long as it’s certain that your loan is getting approved.
Choose Online Direct Lenders if Bank Loans aren’t Right for you
When you’re in a need for money, and a bank loan is not an option since you’re in a hurry or do not  
wish to run around for paperwork or have been rejected by a bank or are in any other scenario that  
deems a bank loan not the right choice for you, you have to look for registered lending individuals or  
companies.
In the earlier days, Direct Lenders apart from banks, were almost exclusively approachable through  
brokers or pawn shops and some other stores/offices that lenders operated from. It was hard and  
probably impossible to know how a lender could be trusted. It was equally hard to compare the  
deals that these lenders offered. To add to this, the regulations were not stringent enough for it to  
be safe to borrow money from such lenders, in most states.
However, in the recent years, a lot of options have become available online. As this helped the  
business grow, the industry became significant enough to attract stronger and better regulations. To  
add to that, the online platform being easily accessible to everyone, made the lenders (especially the 
 ones who operate primarily online) work more professionally, or suffer from negative online  
comments and feedback. This is the key reason why it is wise to choose reputable Online Direct  
Lenders, if a bank loan is not the right option for you.
In short the key advantages of Online Direct Lenders are:
 Tend to offer quick and easy solutions, often without a need for paperwork
 Have quicker application and approval processes
 Are often more trust-worthy than non-bank Conventional Direct Lenders
 Tend to offer more competitive deals
 Ease of access and application – every step related to the loan can often be done completely  
online, even from your mobile device
 Some loan options are available to borrowers with bad credit history and some can come  
without even a credit check process
 Loans can be very flexible – at times available with very precise amounts that you need and  
at times also available in very short term options
 Aware consumers can easily look for signs that show that the online lender is genuine – Eg.  
BBB Accreditation, genuine contact details available on the website, etc.
A Note about Payday Loans
Payday loans are available from some non-bank direct lenders. There are typically intended to be  
very short term loans, where you borrow a small amount of money from the lender and pay the  
lender back with added charges, in a matter of 7-14 days (sometimes up to 30 days), ideally on your  
next payday.
They usually have a high percentage of interest in terms of APR, but if you need money just for a  
short time, the absolute amount that you end up paying as a charge for borrowing the money, might  
be smaller than that of a longer term loan.
As above, Payday loans being non-bank products, are preferable taken from trustworthy Online  
Direct Lenders.
Bonus Tip: What if you’re Previously Rejected and Still Need a Loan?
If you’re rejected for a loan, this might reflect on your credit history in ways. Some  
direct lenders specifically provide and option to borrow a 2nd chance loans, designed  
to serve your needs. Read on till the end to find a recommended link.
Conclusion
To wrap up, we could summarize that the strict and elaborate bank loan is worth it when it’s okay to  
wait for one and you qualify for one. You as a borrower, would be the right person to judge if the  
bank loan isn’t right for you. In such a case, Online Direct Lenders are the better bet over  
Conventional Direct Lenders and there are rather straightforward ways to tell apart trustable online  
lenders from fake ones. It is important to do a little homework before you finalize a loan.
EzPaydayCash is a recommended service if you’re currently looking for a direct lender of online  
payday loans. They are best known for their service as direct lenders of 2nd chance payday loans.