It’s hard always to ensure you have the funds for the emergencies that crop up occasionally. 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. You may already know these differ from other loans; the term direct lender might also be new to you. 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 to other companies to get you the best deal. However, 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. Many private direct lenders can get the money to you 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 details are going. Choosing your 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 allows you to assess and communicate with them to get the best loan.
Direct lenders allow for a more flexible repayment plan and offer short-term loans. These types of loans allow you to borrow a small amount of money and pay it back quickly. Direct lenders can also provide payday loans, where you borrow the amount you need and pay it back on your next payday.
Although some short-term loans from direct lenders have higher interest rates, you’re 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 to be paid sooner rather than later. So, knowing that you can receive the money on the same day can be a real benefit.
Final words :
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, research, and don’t be afraid to ask questions to feel confident in your borrowing.
