Direct Payday Lenders and What They Can Offer

Direct payday lenders are a specific type of borrowing resource which exists within the online short term loans market. These lenders aim to offer applicants the ability to apply for a small sum of money in a manner which is simple and fuss-free. Unlike lenders who operate on a larger scale, such as those offering Hire Purchase agreements, the loans on offer from direct payday lenders are designed to enable small borrowing, which average loan values being in the region of £300.00. In order to deliver a service reflective of the loan amounts being considered, direct payday lenders will usually be able to deliver a lending decision to their applicants the same day of application and in some cases within a few hours; providing all the relevant checks are completed. These type of loans do not pretend to be suitable for everyones needs and instead are specific in their offerings. This means that these loans will not be suitable for everyone. Ideally these type of loans are designed to be used in times when an emergency expense arises and a small amount of money is needed to cover the cost. This means perhaps a unexpected vet bill or broken washing machine. The point here is that these costs are not on-going are hopefully will only arise from time to time and therefore can be managed accordingly. For consumers who on the other hand wish to manage their on-going financial requirements, such as home improvement or a once in a life time holiday; direct payday lenders will not be a suitable choice.

Offers of Direct Payday Lenders

The actual service offered by direct payday lenders is one which facilitates short term borrowing on a direct basis. This means the application process will be completed from start to finish via the lender with which the process is started. This means effectively that there is only one lender who is considering whether the loan requested is suitable for the individual applicant and the details they have supplied by completing a application form. Not all lenders who exist in this market place operate in this way and in fact this same market is home to brokers who do not consider applications on a direct basis. Unlike direct payday lenders, brokers will ask that a partial application is completed and then will use this information to determine if they believe there is a lender available. The lender suggested by the broker will not always be able to assist and instead will make a decision once a full application has subsequently been completed. Although brokers can in some respects cut out the ‘hassle’ element of searching through lenders, it is important to realise that brokers can often charge a fee for the service which they offer. This means even in instances where a loan is never granted, a fee will still be payable to the broker. This is why in the vast majority of cases direct payday lenders are the preferred choice for most borrowers.