When looking for a loan which is classed as short term, the vast majority of available lenders operate online. Online loans have actually been available to consumers for over a decade and as such collectively, most of us are aware of their existence. Within this multi million pound markets there are many different lenders to choose from and each and every one are governed by the Financial Conduct Authority in terms of how they practice and how they conduct their relationships with customers. This means for potential and existing customers there is a higher standard of customer care nowadays then has ever been the case before. Equally there are now a good selection of ways in which a small loan can be borrowed and repaid, meaning as customers we have a much better opportunity to borrow in a manner which is realistic. As well as considering the options which exist in terms of products, as potential customers we must also be aware of the ‘type’ of lender from which we are considering a loan. Within the online marketing there are typically speaking two different types of lenders who exist. These two groups can be defined as the loan brokers and the direct payday lenders.
Many of us will be familiar with the term broker as it is not a type of supplier which is specific to this market place. Loan brokers exist alongside direct payday lenders in the same way they would in any other consumer market place. Loan brokers effectively offer an indirect service given the fact that in the vast majority of cases they do not offer borrowing facilities directly; unlike direct payday lenders. A broker instead offers the service of helping to find a potentially suitable lender. This means loan brokers will assess the information you provide and from this propose a lender who may be able to help based on your individual requirements and circumstances. Of course a loan broker cannot ever guarantee the ultimately outcome of a completed application with their proposed lender as that decision will be made in-house instead. The suggested lender on the part of the broker will not able to be based on your own requirements as applicant but also their own existing relationships.
Direct payday lenders use a different approach because their applications are completed from start to finish as an internal concern; this means that ultimately the decision will be from the lender from which the application was completed. Generally speaking consumers favor direct payday lenders because the end result is final and direct payday lenders do not charge a fee simply for applying given the entire process is conducted in-house. In the case of some loan brokers there will be fee payable for the service provided although not all brokers charge their customers a fee. The fee is usually applicable as a result of providing a service which cuts out the need to shop around and instead the broker effectively does this job instead. The most suitable choice in lender is therefore down to personal opinion and preference.