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Direct lending. Direct lending is a form of corporate debt provision in which lenders other than banks make loans to companies without intermediaries such as an investment bank, a broker or a private equity firm.
Quick Answer. Indirect financing occurs when a company borrows money from a financial intermediary, such as a bank, according to Oswego University. The company pays the intermediary interest while the intermediary pays interest to its investors or depositors. Direct financing involves the company's borrowing of funds directly from investors. Continue Reading