Direct loan Lenders – A Pocket Guide

Direct lenders have changed the loan industry forever. As the industry has grown, new startups and companies have stepped into the market as direct lenders to help consumers take control of their personal finances by offering loans to these borrowers.

What is a direct loan lender?

The growth of the consumer finance industry has meant there are different types of companies offering credit and loans. A direct lender is a company that lends directly to consumers without middlemen. The supercharged growth of online lending has meant there are many online credit brokers who link to other companies that offer loans and credit. They may get a commission on what you borrow for example. A direct lender does not do this. You simply contact the direct lender and apply for the money from them. Direct lenders have changed the loan industry by creating a greater sense of trust between borrowers and lenders. Direct lenders can be online or offline, though the industry was pioneered by online direct lenders. Direct lenders are only going to continue to grow as more borrowers want to deal with lenders without using middlemen.

How to apply for loans from direct lenders

If you want to apply for a loan from a direct lender, you need to know the process of how to apply for a loan from direct lenders. Direct lenders need to know the following information from you if you are applying for a loan:

Employment: You should be in full-time employment or self-employment with monthly income that you can prove so that you can get a loan from a direct lender. Your salary should be paid into your bank account so that when it is time to make your repayment, you can make it instantly without having to remember because it can be taken instantly from your account.
Being 18 or over: Direct lenders are passionate about financial responsibility. To get a loan from a direct lender requires you to be 18 years or older.
Choose your amount: You need to know how much you want to borrow from your direct lender. You can choose small amounts or larger amounts. Bondora is one of the biggest lenders in Estonia, Finland and Spain that can offer amounts up to €10.000.
Wait to be accepted: The growth of direct lenders has meant that more consumers want loans that they can get instantly. Many direct lenders are processing loans on the same day to keep up with demand from consumers who need the money immediately.

Top tips to follow if you want to borrow from a direct loan lender

Communicate: If you are having financial difficulties with keeping up with your repayments, you need to communicate with your direct lender to let the company know so that you can work out a schedule for repayments. This is why direct lenders pioneered the idea of multiple repayments so that if someone falls behind on making a payment, they can use multiple repayments to get back on track. You can opt to communicate via email or telephone.
Search for the right one: Look for direct lenders that have won awards and have been featured in the press. This shows that these are direct lenders that have instant credibility so that you can borrow money without working with a direct lender that is not legitimate. You can use the Internet to look for direct lenders or alternatively go based on ones that have good reviews and awards.
Know the interest rates: The APR is the golden word for a direct lender and for borrowers. This stands for annual percentage rate and it is essentially the interest rate of how much you will be borrowing and how much you will be repaying. Always know the interest rate before you start borrowing money so that you know exactly how much you need to repay.

What is the difference between a loan lender and a direct lender?

Consumer loans are popular loan products. They are meant to bridge the gap between when you get paid and the money that you need at the moment. Loans from direct lenders are similar and they come from direct lenders of short term loans.

A consumer loan lender typically will offer small loan amounts that can be repaid at the end of the month or around the time that the lender states when you are sure you will have the money to repay the loan. Some loan lenders have similarities to direct lenders.

A direct lender is a consumer finance company that lends the money to borrowers in one transaction. Direct lenders have grown due to the need for more transparency in the consumer finance industry.

A consumer loan direct lender is the future of the consumer finance industry as the lines become more blurred and there are more synergies in different types of lenders coming together.

The difference between a direct loan lender and a bank

The strength of direct lenders is that borrowers can get the money instantly. Some borrowers want to understand the difference between a direct payday lender and bank. Take a look below at some of the top differences that you need to know about:

A bank allows you to have an account to deposit your money: Banks are authorised to allow you to have a current account where you can instantly deposit your money.
A direct lender is only authorised to lend you small amounts of money: There has been a trend where banks are not lending as much money for personal loans, for example. This is where direct payday lenders have come in to bridge the gap.
Banks do not lend as much as they used to: Banks are more interested in finding customers to deposit money instead of lending. Even lending for small business has decreased. Due to this reason, getting a personal loan from a bank has become even harder. Borrowers are changing their requirements financially to integrate them into monthly requirements so that they can borrow from direct lenders.
Banks take a while to issue credit: The explosion of the loan industry has also happened because banks take a long time to issue loan products whether they are credit cards or loans. Borrowers who need the money instantly can use a direct loan lender instead to solve their financial needs.

A direct loan lender is ideal for someone who needs a loan but does not want to go to a bank. You need to have a bank account to receive a loan from a direct loan lender but you don’t need to get all of your credit requirements from your bank. A direct lender is meant to help borrowers who want other options compared to traditional financial institutions.

Borrowers are multi-faceted and no longer stick to the traditional view that everything about their finances has to be done one way. Direct loan lenders are part of this new change in the market.

Why should consumers borrow money online?

Online lending has exploded in popularity. According to the BBC, 4 out of 5 people in the UK have smartphones and the 80 % penetration of smartphones has made the Internet even more popular. It’s only natural that more people will want to borrow money online if they spend a lot of their time surfing or on social media. Shopping online is already extremely popular. Could this translate into how people also search for loans online?

Borrowing money online from an online direct lender is relatively easy thanks to mobile apps and mobile sites from providers.

An online direct lender can help people who are used to being online and don’t want to go into a high street store to borrow money. Many people like being able to be in the privacy of their own home while reading about how to get a loan instead of talking to someone face to face. Discretion is important in personal finance and direct lenders help people be discreet about their money.

Direct lenders and responsible lending

The reason why direct lenders are more credible than other types of consumer finance companies such as credit brokers is because of responsible lending. Direct lenders are dedicated to being responsible and fair to consumers. It is critical for companies to look at lending to the right people who are not going to default and to not load consumers with more problems than they can handle.

There are some consumers who need financial help and there are others than can fall under a lot of financial pressure if they take on too much. Direct lenders who are responsible will look at someone’s financial profile and they will decide how to help that person.

This is why the idea of multiple repayments has been so helpful and this is something that only direct loan lenders can do. Direct lenders have the flexibility to offer loan products that can help people without giving them even more problems.

Who are the types of people who should use direct loan lenders?

Customers are at the heart of direct lenders. The types of people who should borrow from direct loan lenders include some of the following consumers who need financial help:

The borrower who needs a boost: Some borrowers can have rock solid finances but sometimes life gets in the way. Instead of getting down and being worried, this borrower can contact a direct lender because of their already solid background, it is simple to apply for a loan to help out with an emergency. When payday comes along, this borrower who needs a boost can instantly pay it back and carry on with his or her life.
The borrower who needs a small amount of money: Smaller amounts of money have powered the direct lending industry as more people want to borrow small amounts to help them in their life. This type of borrower is ideal for a direct lender because this person will be able to pay it back on time and typically does not want a lot of financial disruption in life. Small loan amounts are easily administered by direct loan lenders compared to other finance companies.
The private borrower: Dealing with personal finance can be difficult and it can be even harder than you are dealing with financial problems. When you need money, it can take a toll on you emotionally. It does not have to be this way because you can contact a direct lender who can help you solve your financial needs as soon as you put your application through. The borrower who is private and does not want to include family and friends into their personal financial needs is the type of person who would benefit from using a direct lender.
The borrower who wants to change their financial life: If a borrower needs money but wants to become more responsible with their finances, borrowing money from a direct lender can help to build a credit profile. Having a credit history is critical if you have dreams of getting a mortgage in the future, for example.

What are the signs that I am using a good direct lender?

Direct loan lenders want to be right for customers but borrowers also need to look out for what makes a direct lender a good choice for their loan requirements. Take a look at this profile so that you know how to choose the right direct lender for you:

Visible address and contact details: Borrowers should always be able to contact the company via email or the telephone in order to talk about their loan. Always look for this when you are researching a direct lender.
Look for a FAQ section: Frequently asked questions (FAQ) are popular on many websites, but for direct loan lenders, these sections are valuable for their websites because they explain the questions that they get the most. FAQ sections on direct lenders websites will also save customers time from asking questions directly because the questions have already been answered.
Representative examples are available: Reading about interest is different compared to seeing an example. Peachy shows representative examples of interest on a loan, and this is something that every good direct lender should do. You should have an idea of how much it is going to cost you before you borrow the money. An example will illustrate that in a more powerful way compared to words or numbers.
Trade organisation membership: A responsible direct lender will be a member of various consumer finance organisations. Some of the most popular industry organisations include the Consumer Credit Trade Association and the Consumer Finance Association. These organisations help to provide assistance and policy ideas for the industry, and they are extremely credible. When you see that a direct lender is part of these organisations, this highlights that they are part of the leaders of the consumer finance industry that want to offer incredible financial products to customers.

The power of direct loan lenders

Direct loan lenders provide customers the power to take back control of their finances without feeling worried or scared about dealing with financial problems head on. With this incredible mission, direct lenders use the power of technology and the Internet to empower people to change their lives forever when it comes to finances.

If you are ready to change your finances and you need help to get there, a direct loan lender can be the solution for you!