Financial needs can arise unexpectedly, often requiring immediate attention. When that happens, accessing quick and flexible borrowing options becomes essential. In the UK, Direct Lenders play a crucial role in providing borrowers with short-term financial solutions, such as short term loans, payday loans, unsecured personal loans, etc.

In this blog, we’ll introduce you to some of the most prominent lenders. Shedding light on their offerings and highlighting key features. Whether you’re a seasoned borrower or just starting your financial journey, this guide will equip you with valuable insights to make informed lending decisions.

What is a direct lender?

A Direct lender is a financial institution or company that provides loans directly to the borrower. This means that from application to loan disbursement and repayment, you deal directly with the lender.

Direct lenders can include banks, credit unions, and online lenders. They have the authority to make lending decisions and provide the funds for the loan.

List of direct lenders in the UK

1. Lending Stream

Lending Stream is known for its adaptability, providing loans that vary from £50 to £1,500. We offer a six-month repayment period, ensuring a manageable timeframe for repayment. With Lending Stream, your loan comes with a fixed interest rate, guaranteeing consistent monthly repayments. Our Rep APR stands at 1333%.

2. Drafty

Drafty brings a novel approach with its credit line. They offer amounts from as little as £50 up to £3,000. The standout feature of this credit line is its ongoing accessibility, as long as payments are made on time.

This provides a versatile answer to your short-term financial requirements. With a representative 96.2% APR (variable), you can be confident in your knowledge of the costs involved.

3. 118 118 Money

Specialising in short-term personal loans, 118 118 Money allows you to borrow money between £1,000 and £5,000. Their website states that you can receive the funds between 15 minutes and 2 hours depending on your bank. And if you want to borrow more, you’ll need to apply again.

4. CashASAP

In need of quick cash solutions? CashASAP offers loans starting from £150 up to £750. New customers can borrow up to £400 and returning can access larger sums up to £750. 

Repayment terms vary from 35 days to 6 months with a representative APR of 1269.8%.

5. DotDotLoans

DotDotLoans range from £100 to £1000, with a representative APR of 1228.67%. Their repayment terms are from 3 to 9 months. This allows customers to manage their repayments in a way that suits them.

6. Everyday Loans

Everyday Loans offer loans ranging from £1,000 to £15,000 with repayment terms from 18 months to 5 years. 

Fixed interest rates provide stability, and the representative APR of 99.9% ensures you understand the overall borrowing expenses.

6. The Money Platform

The Money Platform is a UK-based peer-to-peer lending platform. It specialises in providing short-term loans. Their loan amounts typically range from £250 to £1000. And the repayment terms are usually between 4 weeks to 12 weeks. The representative APR of 839.20% highlights the cost of borrowing through this platform.

7. Savvy

Savvy offers loans from £300 to £1,200 which you can repay over 6, 8 and 12 months. The interest rate and repayment term of your loan will vary depending on the amount you borrow.

8. QuidMarket

QuidMarket offers loans ranging from £300 to £1,500, with a representative APR of 1297.5%. Repayment terms spanning 3 to 6 months. Repeat customers may benefit from more flexible terms. 

Comparing direct UK lenders empowers you to make well-informed decisions. Before seeking short-term financial solutions, always consider the costs. Plus, your repayment capability before proceeding with any loan.

Advantages of opting for a direct lender

Choosing a direct lender for your financial needs can enhance your borrowing experience. Here’s why going through a direct lender can be a great choice:

1. Streamlined process

Direct lenders eliminate the middlemen. This results in a more efficient and direct loan application process. This means quicker approvals and faster access to funds.

2. Personalised solutions

Direct lenders take the time to understand your unique circumstances. They offer tailored loan terms and options that align with your financial goals.

3. Clear communication

Dealing directly with the lender ensures transparency and clear communication throughout the loan journey. You’ll have a direct point of contact for any questions or concerns.

4. Flexible options

Direct lenders often provide a range of loan products and repayment plans to cater to different needs and preferences. This allows you to choose what suits you best.

5. Competitive rates

Without intermediaries, direct lenders can offer competitive interest rates. This could save money over the life of the loan.

Securing a loan from a direct lender in the UK: A step-by-step guide

Securing a loan from a direct lender in the UK can be a straightforward process. Here are some guidelines:

1. Research and comparison

Look for reputable direct lenders that offer loans that match your requirements. Review interest rates, loan terms, and the lender’s reputation. It’s important to choose a lender that is regulated by the Financial Conduct Authority (FCA). Doing so means they are more likely to adhere to responsible lending practices.

2. Check your eligibility

Visit the lender’s website to understand their eligibility requirements. Typically, you’ll need to be a UK resident, meet a minimum age requirement (usually 18 or 21), and have a steady source of income.

3. Online application

Most direct lenders provide an online application platform. Fill out the required details accurately. Including personal information, income details, and the loan amount you are seeking. Be prepared to upload any necessary documents, such as proof of income or ID. Double-check the application before submitting it to avoid any errors or omissions.

4. Loan assessment

The lender will assess your application. Plus verify the information provided. They may perform credit checks and affordability assessments. This is to ensure you can manage the loan responsibly.

5. Loan offer and terms

If approved, the lender will present you with a loan offer. It will cover the loan amount, interest rate, repayment schedule, and any related fees. Take the time to review the terms before accepting.

6. Acceptance and funds disbursement

If you are satisfied and accept the offer. The lender will then proceed to disburse the funds to your bank account. This mat takes a few hours or a few days.

7. Repayment

Adhere to the agreed-upon repayment schedule. Direct lenders usually set up automatic repayments from your bank account. Ensure sufficient funds are available to avoid any disruptions.

8. Communication

Maintain open communication with the lender. If you encounter difficulties making payments, reach out to the lender. You can discuss potential solutions or adjustments to the repayment plan.

9. Early repayment and fees

Some direct lenders allow early repayment without additional charges. Confirm whether this option is available, as it can save you money on interest.

10. Customer support

In case of any queries or concerns, contact the lender’s customer support. Reputable lenders should have responsive and helpful support teams.

Bottom line

When you’re faced with money problems, turning to a direct lender in the UK can help. From secured personal loans to unsecured ones, the options are diverse, catering to various financial needs. However, it’s essential to compare loans and borrow responsibly.

If you are seeking a reliable direct lender, consider Lending Stream. Customers can apply for a loan online at representative 1333% APR. And if approved, we’ll send the cash to your bank in 90 seconds. With fast and flexible loans, we’re committed to providing convenient short-term lending solutions.

FAQs

Disclaimer: The information given above is provided for reference only. This is not financial advice. Also, we are not affiliated to any of the direct lenders named in our article. They are provided only for your reference.

Related guides:

What is the Difference Between a Broker and a Lender

What Should You Look for In Payday Loans Direct Lenders

Short Term Loans vs Payday Loans: Key Differences