Types of Online Lenders

When you’re in search of cash loans online, perhaps the most important factor to consider is how you’re going to choose between all of the online loan companies. There are several different types of online lenders and it’s important to understand the differences between lender types before applying for an online loan.

Direct Lenders

Online loans direct lenders are companies that receive and process your online loan application, and fund your loan. They also process your loan payments and conduct any additional service on your loan. A few things to keep in mind when working with online loans direct lenders:

Direct lenders will service your loan throughout the entire process - from application to payoff.
Typically, they do not send your personal information to other companies without your knowledge or consent.
Direct lenders should display the rates and terms for all online loans that they offer on their website.

State Licensed

State licensed online lenders are licensed in each of the states in which they operate in (that they are required to be licensed in; some states do not require licenses). To check to see if online lenders are state licensed, look for their rates and terms pages, which typically display a copy of their license. State licensed lenders will:

Display the licenses for the states that require a license on their website.
Abide by state laws and regulations, which protect your from outrageous fees and unfair lending practices.
Undergo periodic audits by the state to ensure compliance with applicable laws.

Credit Access Businesses & Credit Service Organizations

Credit Access Businesses (CABs) and Credit Service Organizations (CSOs) obtain credit for consumers from independent third-party lenders - typically in the form of payday loans or title loans. The CAB/CSO will process the loan application and the third party lender will fund the loan.

Some states require a CAB, CSO or third party relationship.
Generally, loan documents are signed and payments are made to the CAB/CSO.
A fee may be associated to obtain the loan.

Tribal Lenders

A tribal lender is a lender that is based on a federally recognized American Indian reservation, or is operated by an American Indian community. In the United States, tribal lenders can provide many of the same online loans as traditional lenders. However, tribal lenders may be able to avoid some of the state law restrictions that are placed on state-licensed lenders, because the United States government recognizes these entities as their own independent sovereign nations that govern themselves within U.S. borders.

Tribal lenders can lend to both tribal and non-tribal members.
A website will typically disclose that they are a tribal lender either at the bottom of the website, or on an "about" page.
Tribal lenders can typically charge higher fees than a state-licensed lender.

Offshore Lenders

Simply put, an offshore lender is one in which is based in another country but lends within the U.S. Offshore lenders are not regulated by the states in which they operate in, so you will not get the same level of security in working with an offshore lender as you will with a state-licensed lender. When borrowing from an offshore lender, it may be problematic to resolve any issues.

When working with an offshore lender, be wary of:

Hidden fees.
Increased loan fees and/or interest.
Aggressive collections tactics including threatening emails and phone calls.

Loan Matching Services

Some online loan companies are actually loan matching services, also referred to as “lead generators”, which serve as a middleman when borrowing cash loans online. When using a loan matching service, you will fill out your loan application on their website (sometimes, only a partial application), and then they will sell your information to third party lenders. The lender that buys your information will then fund your loan if approved. Typically, you can pinpoint a matching service in the website disclaimer, which usually will say something like "the operator of this website is not a lender" or "match you with a lender".

A few things to keep in mind when working with a loan matching service:

You will have no control over which companies view the personal information you submit on your application.
Matching services may work with a variety of lender types - including those which are not state licensed.
These services will never determine your loan amount, fees or repayment terms - that will be up to the lender that funds your loan.

Questions About Online Lenders

A: Speedy Cash is a reputable, state-licensed lender. In most states, we operate as a direct lender. In Texas and Ohio, Speedy Cash is a registered CAB/CSO. As a state-licensed lender, we abide by the applicable laws and regulations within each state that we operate in. Speedy Cash offers cash loans online including payday loans, installment loans, and line of credit loans.

A: Yes. Speedy Cash is affiliated with third party, state-regulated lenders in Ohio and Texas. In Ohio, Speedy Cash has partnered with a third party to act as the CSO (Credit Services Organization). In Texas, Speedy Cash has partnered with third party lenders to act as a CAB (Credit Access Business).

A: Speedy Cash is state licensed in every state that requires a license for the products we offer. You can view our state licenses by visiting the rates & terms section.

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