Direct Lenders of Small Loans

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Direct Lenders of Small Loans
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Within the online marketing for borrowing small
loans there are two specific types of lenders who
exist. These are known commonly as the direct
lenders and the loan brokers. The difference
between these two providers of small loans can
mean a difference in the total amount payable.
That said it would be fair to say that both of
these providers offer a service which can serve
the needs of consumers. So in order to understand
the direct lenders and loan brokers a bit better,
lets dive deeper into what it is each of them
offer when it comes to short term loans.
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As most of us will already be aware, short term
loans or payday loans as they are also known,
allow us the ability to borrow a small sum of
money, usually no more than 500.00 in value. The
loans themselves are accessible via the
completion of an online based application form
and in doing so we are usually offered a range of
flexible repayment terms.
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Depending on our own individual needs this can
mean repayments over a few months or several.
Generally, a bit of research will reveal the
ability to repay over 2 months or 6 months for
example. All payday loan lenders whether they be
direct lenders or loan brokers, are now regulated
by the FCA who are the Financial Conduct
Authority. It is the job of the FCA to regulate
and monitor the activities of all lenders who
offer these type of loans.
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Payday Loan Lenders and How to Afford their Loans
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So back to the case in point then, what is the
difference between direct lenders and the loan
brokers of payday loans and why is there a likely
difference in the overall cost of borrowing
depending on the selection made? Firstly, we will
look at the direct lenders of these loans. A
direct lender, as the name suggests offers the
ability for us to apply with a specific lender
and therefore directly. When we complete the
application online, the lender with whom we
submitted our details will make an informed
decision as to the suitably of our loan request.
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When this decision has been made, this same
lender will deliver the outcome and if
successful, will be the one to deliver the loan
to our account. In instances where the loan
application is deemed unsuccessful direct lenders
will not charge a fee simply for the service of
considering your application.
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So what does a broker do differently to the
service offered by direct lenders? In simple
terms it is actually very similar but there are
fundamental differences to consider. A broker
will consider the information provided in the
application and then will attempt to locate a
lender who may be able to help with our request.
They will make a recommendation to us as to a
potential lender based not only on our needs but
also the lenders with whom they have an existing
relationship with. 
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This means by using the service of a broker you
are not dealing with the lender directly in the
first instance and furthermore, a broker cannot
promise the outcome of the application will be a
success. The main point here is that brokers
charge a fee for the service of simply looking
for a potential lender.
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For More Information
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