Direct Lender vs Brokers Information Hub

Want to know more about how to apply for a loan online or what to consider before taking one out? We’ve answered some common questions around the difference between Direct Lenders and Brokers.

  • A credit broker is a firm that can help you find a loan, and may have come to exclusive arrangements with the lenders on their panel to offer you a better interest rate than are usually available.

  • Some people work with a broker to find the best deal out there but this comes at a price. These firms can charge an upfront fee for their services and then compile a roundup of the best deals available that work for you. They may also earn commission from the lenders they work with for bringing custom to them.

    The kind of loans available through payday loans brokers are usually only used to fund relatively small amounts of credit when you have no money available otherwise. They’re used for such things as covering the cost of an emergency expense near the end of the month. Broker fees can be a significant addition to the cost of the loan, and must be paid up front, before you’ve received a loan at all.

    If you’re looking for a small loan to cover the cost of an emergency, then chances are you won’t have the funds available to pay broker fees in order to get that loan! A broker may be better suited to those individuals looking for a much larger loan, perhaps a mortgage or a personal loan for a home renovation.

  • Here at Sunny we don’t consider ourselves a payday lender, and instead offer short-term instalment loans that can be repaid over 6 or 14 months depending on the amount you borrow and the repayment schedule that works for you.

    We are a direct lender – if you are approved for a loan with Sunny, it is Sunny who will transfer funds to your account and collect your payments.

  • Sometimes, you may find yourself considering a potential payday loans direct lender but once you start researching them, you become unsure whether are a direct lender, or whether they are in fact a broker. You can check the website small print, where they must state the service they are offering but here are some other things to look out for, to work out if you’re dealing with a broker or a direct lender.

    • They state that they deal with a panel of lenders. Loan brokers are required to state that they are a broker rather than a direct lender. However, if you haven’t found that information on their website yet, but have noticed they talk about their “panel of lenders” this is also a sign that they’re a broker, rather than a direct lender.
    • They offer 100% acceptance for loans, guaranteed. No direct lender can offer 100% guaranteed acceptance as they must carry out credit and affordability checks that are determined by your past credit history. Brokers may offer this because they will always be able to find you a loan – even if they can only get one with a very high interest rate and for a low amount if you have bad credit.
    • There are upfront fees. Brokers may ask for an upfront fee before accepting your application. Direct lenders won’t ask for this.

Got everything you need?

Decided to skip the payday loans brokers and apply to Sunny to get a short-term loan? Then hit the apply now button below and find the funds you need.

Monthly rate
Based on a
30 day month
Loan term
The loan term is fixed but you can repay early at any time
The loan term is fixed but you can repay early at any time
Representative example
£ for months
%pa (fixed)

Comments from Sunny customers

Sunny offers a service that our customers love. That’s why we have an excellent TrustPilot score** and some great testimonials. You can see these below, to help when making your decision.

Looking for alternative lending options?

Want to know more about short-term loans or the circumstances when you may need one? Take a look at our other guides below to find out more.