Storefront Lenders: Is It Better than Online Lenders?

Millennial Magazine - Storefront lenders

There are instances where you would rely on short-term loans to get you through the hard times. If you are suddenly hit by a financial emergency and you need money, looking for payday loans is a great way to handle it.

When applying for short-term loans, we have two choices: Storefront lenders and Online Lenders. Some of you would prefer going directly to a brick-and-mortar shop instead of doing everything online, but some people feel more secure by doing it online.

Let’s have a closer look at the benefits of online lenders and lenders with physical stores and which one is better.

Storefront Lenders

One of the best reasons to opt for a storefront lender is you can go to the physical store to get your loan. If you apply directly to storefront lenders, you can ask for help when you are filling out the application form and you can speak with a real, live person to get the answers that you need.

The response is also immediate because once you’ve asked something, they can answer you immediately. The money will be given to you on the same day once the application is approved and you can use the money right away.

Online Lenders

Online lenders, on the other hand, operate completely online. The consumers can access their business through a website and all of the applications and approvals will happen there.

If you want to know more about the loan or the process, they usually have customer service representatives that would answer your calls and help you with your concerns.

As for the release of the fund, these online lenders do not usually send the money on the same day of your approval. They will often be sent on the next business day. There are a few online lenders that can send the money early, but only if your application was approved earlier.

The most notable benefit is that you won’t need to go out of your house and go to a physical store to apply. You can do everything in the comfort of your home and the money will be sent directly to your bank account. Payments can also be done online so it is hassle-free.


In the past, storefront lenders are very popular even if there are a lot of online lenders operating already. It is because of security issues. Most people don’t trust online lenders back then and they are scared that their personal information would be used for something else.

However, when some people decided to try online lending, most of them stayed and never went back to storefront lenders.

Because of this, many store owners decided to adapt to the needs of the masses and opened their online lending sites. At first, they are operating both an online and a brick-and-mortar store, but after a few years, they focused solely on online lending because people prefer this.

It is all About Experience

Personal experience is one of the deciding factors why most people opt for online lending. There are still a lot of lenders with a brick-and-mortar store, but certain trends showed that there is a huge increase in the number and dollar amount of loans online.

Back in 2017, more than 73 percent of loans given to new customers came from online lending. Many people are drawn to the ease of online lending and they are also available any time of the day so if you are in a hurry and you need money immediately, online lending is the way to go. Also, some of the online lenders borrow money even for those who have bad credit.

Older People Prefer Storefront Lending

The younger generation prefers online lenders as they are more convenient and easier to use. However, older people with ages 40 and above prefer going to a shop to apply for loans. These people have been applying for loans for a long time and they prefer stores than online lending.

They already know the process and the people working for the lending companies already know them so the process would be much smoother. They prefer face-to-face transactions because they feel safer this way and they are also guaranteed that their payments are received on time.

Is Storefront Lending still a Good Choice?

Yes, lending companies with a brick-and-mortar store is still in demand right now. Although not as popular as online lending, they offer something that you can’t find from an online lender.

When you apply for loans online, the interest rates are fixed. What does it mean? You cannot negotiate for a lower rate because it is already pre-determined when you apply.

Lenders with a physical store are more lenient when it comes to this and if you always pay on time, they can provide a lower interest to you. Even if you talk with a customer service representative when you apply for online loans, they can’t lower the interest rates.

Which is Better?

For this question, both of them provide benefits and disadvantages and it would always depend on the situation you are in.

If you don’t want to go out and you don’t have the time to go to a physical store to apply for a loan, doing it online is the best way to go. Online lenders provide a secure way to apply and your personal information is protected 100 percent.

If you have the time to go to a physical store and you need the money on the same day, you should opt for a storefront lender. Your personal information is safe and you can even negotiate for a lower interest rate.

You have to make some to visit their physical store, but as long as you arrive their early and your application is approved, you will receive the money on the same day.

Final Thoughts

It doesn’t matter whether you opt for storefront or online lending because both of them can provide money in times of need. Choosing one is just a matter of preference. Although we are more inclined to online lending because it is easier, some people still prefer storefront lending.

What do you think?

Written by Jim Hughes

Jim Hughes is a content marketer who has significant experience covering technology, finance, economics, and business topics for about 3 years. At the moment he works as content manager in

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