Direct Lending

Direct lending refers to a financial arrangement where borrowers receive loans directly from lenders, bypassing traditional banks or financial institutions. This typically involves private investment firms, peer-to-peer platforms, or alternative lenders providing funds to individuals or businesses. Borrowers may seek direct lending for faster access to capital or for loans that cater to their specific needs. In return, lenders earn interest on the amount loaned. Direct lending has gained popularity as a more flexible and accessible form of financing, especially for those who might not qualify for traditional loans.