Direct Lenders of Short Term Loans

When it comes to short term loans there are a number of different loan options and lenders to choose from. The market in which these small lending tools exist has evolved quite considerably over the years and for many consumers, the modern day offering, is not one with which they are familiar. For many years the short term loans market was dominated by a single repayment style of borrowing and sometimes this meant the resource was not truly fitting for the needs of the individual borrower. Thankfully as the 10 plus years have passed since short term loans were first introduced in an online format, the style of borrowing has been transformed and as such is now much more consumer friendly. Nowadays the loans being offered to borrowers are more flexible in their repayment terms, better assessed in terms of suitably for borrowing and are underwritten with the regulating bodies requirements at their core. This is of course all great news for consumers and means more so than ever, there is real choice and selection available within the vast market place for borrowing a small sum of money. The loans being offered today vary in value and as such will often allow consumers the ability to borrow between £100.00 and £500.00 with some consumers having higher loan values at their disposal. The repayment terms, with the added flexibility in mind, allow the ability to borrow over a range of repayment terms, still starting from a single month and then extending up to a 12-month period and anything in between.

Direct Lenders of Short Term Loans

When it comes to the type of lenders who offer short term loans, there are two specific types for consumers to consider. These lenders can be grouped into direct lenders and then loan brokers. Firstly, let’s look at the direct lenders for example. Direct lenders operate an application process via an in-house application form. This means when an application is completed with a direct lender, it is that same lender who considers the application and will make the final decision as to whether a loan can be granted by them. In the vast majority of examples, a direct lender will not charge a fee for the service of simply applying for a loan and this remains true regardless of whether the application is converted into a successful loan. The other type of lender is that of loan brokers. Loan brokers offer the service to provide a proposed lender, based on the information supplied by the customer in completing the application form. In the same way that a comparison site will make suggestions as to suitable providers, a loan broker will attempt to find a lender to meet the applicant’s individual needs. Given that brokers do not therefore offer loans directly, there can be and often is, a fee payable for the service they offer. This means that unlike direct lenders, if a broker completes their service and finds a proposed lender, regardless of the outcome with this proposal; there will be a fee payable for the service.