Storefront Lenders: Advantages and Disadvantages

There are countless finance articles out there that discourage people from borrowing money. While we understand where they are coming from, we also recognize the fact that sometimes life just happens and we are left without any choice but to borrow money.

Fortunately, there are various financial institutions that can step up to provide assistance depending on your eligibility. Honestly, we prefer storefront lenders over other types of lending institutions for reasons that we will be sharing with you in a bit. However, you might want to check out Store Front Lender LLC as well in order to learn more about loan regulations and reviews for more information.

What Is a Storefront Lender?

Before moving forward, though, allow us to first define what a storefront lender is. In a nutshell, it is a type of lending company that owns an actual brick-and-mortar store. They are unlike online lenders that don’t have an offline headquarters or a brick-and-mortar bank that offers other financial products and services.

Advantages of Storefront Lenders

With that said, here are the different advantages of storefront lenders as promised:

• They are legitimate. Storefront lenders must meet their state’s lending requirements and regulations to qualify for the various permits and certifications needed for the operations of their office. Otherwise, they might find them revoked and themselves out of business.

• They have more flexible eligibility criteria. And because storefront lenders have state regulations to follow, they usually have more flexible eligibility requirements especially when it comes to credit scores.

Another factor why they seem to be more understanding compared to other financial institutions, especially online lenders, is the human factor. You are dealing with actual people who can be more empathetic towards your needs compared to the cold chatbots that you might talk to when applying for payday loans from online lenders.

• They offer lower interest rates. In relation to the previous point, storefront lenders are required to follow state regulations with their interest rates as well. These rules were created to protect borrowers, after all.
• They offer human interaction. Finally, as mentioned above, the main merit of storefront lenders is they offer more human interaction compared to online financial institutions. At the very least, most storefront lenders really want to reach out and form relationships with their clients. We really appreciate and value this factor.

We find it especially valuable when filing for business loans. Establishing a go-to lending partner who really knows you on a more personal level really helps boost the growth of your business significantly.

Disadvantages of Storefront Lenders

Of course, we’re not saying that storefront lenders are perfect for everyone. They also have their own fair share of disadvantages, such as the following.

• They are not that convenient. One of the reasons why people opt for payday loans is because they are faster to apply and get approved for, which can be helpful during emergencies.

Now, while storefront lenders usually offer one-day processing for their loans, searching and choosing which one to go for can eat up quite some time. You see, comparing between multiple storefront lenders require more effort than simply opening online lender websites in different tabs.

For one, there are still quite a number of storefront lenders that don’t have any online presence. You might need to ask around and roam the streets to find their offices and potentially travel back-and-forth to compare them more accurately.

• They can be difficult to find online. To further add to that inconvenience, most of those that do have some sort of online information (such as business listings and user-generated references) offer inaccurate data at best.

• Human interaction works both ways. Finally, we acknowledge that some people count the human interaction factor as a disadvantage. We have friends ourselves who feel more comfortable borrowing money with that online mask and physical distance.

Storefront Lenders VS Online Lenders

In the end, it will all boil down to your needs and preferences. We recommend storefront lenders for people who are not that well-versed with online transactions (such as the elderly). It is also a great option for people who need flexible credit score eligibility and lower interest rates. As mentioned, it is also great for small business owners who want a go-to place for all their business loan needs.

On the other hand, we recommend online lending for people who are more well-versed in digital technology. It is also a necessity for people who simply don’t have the spare time to process their loan applications during office hours. Finally, there are also those who feel more secure in having an online footprint to keep track of their financial records.

To end, we also want to remind you that there are other types of financial institutions out there that offer payday loans and short-term loans. We have simply chosen to highlight storefront and online lenders since they are currently the most popular choices today. Good luck!

This content has been published by Ankit company. The WiredRelease News Department was not involved in the creation of this content. For press release service enquiry, please reach us at contact@wiredrelease.com.

source https://wiredrelease.com/press-release/storefront-lenders-advantages-and-disadvantages-2020-11-30