It’s hard to always ensure you have the funds for the emergencies that crop up now and then. You might not have a lot of savings to cover them, or you may not be getting paid for a few more weeks either. However, there are other options out there to consider. You could look at short term loans from direct lenders in the UK. These are different from other loans you may already be aware of, and the term direct lender might be new you to as well. So, keep reading to find out more about direct lenders.
What Is A Direct Lender?
A direct lender does what it says on the tin. You borrow your requested amount directly from your chosen lender. A direct lender can be a financial institution or a private company that offers loans to the public. If you apply for a loan through a broker, they may pass your information over to other companies in the hopes of getting you the best deal. But a direct lender will be the only one processing your application and providing your loan.
Applying for a loan via a direct lender can be very straightforward as you can fill out an online application form and receive a decision within minutes. A lot of private direct lenders can get the money to you a lot quicker if approved. Some promise to pay out within as little as an hour. Choosing a direct lender also means that you can contact them if any issues arise.
Benefits Of A Direct Lender
Apart from processing your application a lot quicker, opting for a direct lender allows you to have full control over where your personal details are going. Choosing your own loan provider means you can find the best lender for you, instead of a broker choosing one for you from their list of clients. Working with the lender directly gives you the ability to assess and communicate with them to get the best loan for you.
You may find that direct lenders allow for a more flexible repayment plan and offer things like short term loans. These types of loans allow you to borrow a small amount of money and pay it back over a short period of time. Direct lenders can also provide payday loans, where you borrow the amount you need and pay it all back on your next payday.
Although some short term loans from direct lenders have higher interest rates, you’re actually protecting yourself from the rising rates you’d be paying if you opted for a 3-year repayment plan. The quick turnaround with direct lenders is one of the top selling points for most people too. If you’re struggling with a large, unexpected bill, it probably needs paying sooner rather than later. So, knowing that you can receive the money on the same day, can be a real benefit.
Choosing to take out a loan shouldn’t be a rash decision and knowing about different types of lenders will ensure you make an informed choice. If you think a direct lender is right for you, do your research, and don’t be afraid to ask questions to feel confident in your borrowing.