It’s a question that could pop up when you’re considering borrowing money, thinking about a direct short term loan or searching for a low interest loan provider that’s right for you.
What exactly is a direct lender?
Well, it’s actually quite simple.
There are two main ways that you can start looking for low-interest loans, and knowing the difference between them will help you decide which route it’s best for you to take.
Firstly, some people will go to a broker, who will act as a ‘middle man’ for a wide range of lenders.
After asking you for some personal details, the broker will then consult a database of available loans from financial organisations and try and set you up with the ones that are best suited to your circumstances.
Some brokers charge fees for their services, while others may be free as they receive a commission from the lending company. It’s important to check beforehand whether you will be paying for their help.
However, there is another way. Direct lenders simply cut out the middle man entirely and lend money straight to borrowers, with no additional costs or commissions.
Potential customers can apply for a direct lender loan on the lender’s website, or give them a call, and quickly get approval from the lender themselves.
A direct lender will deal with you personally, which speeds up the process if you need a direct loan urgently.
Why use a direct lender?
One of the biggest plus points of applying for a direct lender loan is the simplicity of the process.
Applying for a direct loan with a direct lender means you have more control over who your personal details have been submitted to.
You will be able to contact your lender with any questions or issues you may have. Direct lenders are also used to assessing loans for bad credit and making responsible decisions.
If you are confident enough about your needs to choose this route, it does mean that you may need to spend longer making sure that you fully understand the terms and conditions of a direct lender before you apply and accept, particularly if you’re searching for loans for bad credit.
What are the advantages of using a broker?
A broker might be a good option if you don't know how to find the right low interest loan.
They can take away a lot of stress by narrowing down the search to the most suitable options for you and your situation. They can advise you on loans for bad credit and won't waste time on companies that might reject your application. However, remember you may still be turned down after applying for a loan through a broker.
If you’re short on time and need to find the best low interest loan as soon as possible, then using a broker could potentially help.
Finally, if this article has convinced you that either a direct lender or a broker is for you, then make sure you choose a lender that’s authorised by the Financial Conduct Authority.
Representative 466.37% APR. Looking for a direct lender loan? Morses Club is a direct lender that provides cash loans, sometimes referred to as doorstep loans, to help take care of those surprise costs. Doorstep loans aren’t right for everyone, so if you are considering it as an option, it is important you understand how it works before you apply.