Payday Loans From a Direct Lender or Installment Loans. What’s Best?

When a financial need arises and you’re short on cash or time, you just want to get what you need fast and hassle-free. Unfortunately, if you attempt to get a loan from a company that is not a direct lender, you could end up with headaches, delays and frustration before getting cash in hand–and that’s if you’re approved at all.

Does that mean you should use a payday direct lender? Or is an installment loan from a direct lender the better way to go? Before we talk about what option is best for you, let’s first explain what the term “direct lender” means.

What is a direct lender?

Not every company that seeks to lend you money is actually lending you their money. In fact, they may not personally review and approve your request for a loan. Some merely take your application and immediately give it to other companies who actually do the work to provide cash for your loan. Anytime a company passes your application forward to one or more third parties, that company is not a direct lender.

A direct lender manages all aspects of the loan process. There are no middlemen to review, approve or deliver a loan to you.

Advantages to using a direct lender

Faster loan processing. With indirect lenders, it’s not unusual to watch your cash request get bogged down as you wait for the paperwork to move around. Because a direct lender handles and coordinates the entire process, loans are processed faster through direct lenders. Jora is a direct, online installment lender, and an approval of your loan application can happen in just minutes.*

Avoid potential privacy issues. With indirect lenders, it’s possible your personal and financial information is being shared or sold among a lot of third parties–companies that you may not know or approve of. Don’t be surprised if you get calls from these firms during and after the process.

Greater process transparency. The more companies that are involved in managing your loan request, the harder it is for you to see the true loan process or get answers. With Jora as your direct lender, you’ll see that the decision process happens quickly and the money you need can be in your bank account as soon as the next business day.*

Is a payday direct lender the way to go?

If direct lending has advantages, is using a payday loan direct lender a good choice to consider? It depends on the timeframe in which you’re comfortable repaying your loan in full. The repayment time for payday loans is very short – often times due in full on the date of your next paycheck.

Direct lender Jora advantages over payday lending

An online installment loan from Jora gives you the comfort of knowing you’re working with a direct lender plus the benefits on an online installment loan that allows you to pay back your loan over time in regularly scheduled payments. Some advantages of choosing an installment lender over a payday lender are:

Reduce financial pressure. By paying over time, you can relieve the stress of needing to repay the loan in full by the next payday.

Better control of finances. Because installment payments are timely and regular, you’ll have the transparency and predictability you need to manage your cash flow.

Balance other financial needs. With every penny of your paycheck not directly obligated to repaying your loan, you can comfortably pay your normal expenses or have additional funds to be ready for any other emergencies.