Traditional lenders are financial institutions, such as banks or credit unions, that provide money to individuals or businesses for various purposes, such as buying a home or financing a business project. They typically offer loans with lower interest rates than alternative lenders, making them a popular choice for those seeking affordable financing. The process of getting a loan from a traditional lender is usually longer and more complex than alternative lenders. While traditional lenders are a tried-and-true option for obtaining financing, they may not be the best choice for everyone. Their strict requirements can make it difficult for those with less collateral to secure a loan.