When it comes to loans, there are a lot of confusing terms and policies out there. It’s best to be completely in the know before agreeing to anything, especially when it comes to your money. To help shed some light on payday loan direct lenders and their benefits, we’ve written a handy guide.
What are payday loan direct lenders?
Payday loan direct lenders are companies that lend to you directly without using external parties or middlemen. These loans are usually for smaller amounts of money, around £100 to £1000, and for a short-term period of up to six months. Payday loans are usually this short to help borrowers get by until their next paycheque.
What are brokers?
Brokers offer a service between the borrower and the lender. Their service helps borrowers find a loan and they usually then take a percentage of the amount as commission. Credit brokers have to be authorised and regulated by the Financial Conduct Authority and listed on the Financial Services Register. They are also obligated to give you a written notice setting out details of any fees they are expecting, to which you must have agreed in writing before anything goes ahead.
Brokers vs. payday loan direct lenders
The main advantage of using a broker instead of getting a direct loan is that you can thoroughly see a broad range of options, as a broker can get quotes from different lenders and present them to you in one go.
Although brokers can provide insightful information, your financial security may not be their top priority. Using a broker could also cost you more money and take more time.
A benefit of direct lenders is that can be easier to address any issues and answer any questions that might come up along the way. The lender can generally give you more accurate answers regarding their loans than a broker.
When would someone need a direct payday loan?
A payday loan can be helpful to cover life’s little emergencies and unforeseen expenses when you are short on cash. For example, if emergency car repairs or home maintenance need doing, a payday loan can help you until more money arrives into your account.
If you are considering a direct payday loan, the best time to apply is when you know the exact amount you want and have assessed various lenders so you know you’re getting the best deal. This is essentially doing the broker’s job and saving yourself money.
Are Sunny direct lenders?
At Sunny, our loans are direct, so if you apply to us directly, you’ll be borrowing from us. We can approve borrowers for a loan that is suitable for them and takes their circumstances into consideration. This is why the application process asks for your personal details such as name and date of birth, address, employment and bank details. We need to see whether the loan you are applying for is something you will be able to pay back without any worries.
Although Sunny is a direct lender, we don’t consider ourselves to be a payday loan company. However, we do offer other short-term loan options that provide more benefits than a standard payday loan. We offer instalment loans ranging from £100 to £2,500, over a variety of terms. In fact, we are one of the most flexible emergency financial solutions in the UK. So when repaying, you can pay more each month if you like and even repay the sum early if you wish to save money on interest.
How to apply for a Sunny loan
Applying directly for a Sunny loan is both quick and easy on our website. You can see how much you’ll pay in interest for different loan amounts using our adjustable calculator. Once you are comfortable with your desired amount and have filled out the online form, we will get back to you with a decision in minutes. The checks we carry out are quick but thorough and help us ensure you won’t struggle to repay the loan.
If your loan request is approved, the money will arrive into your bank account in as little as 15 minutes. However, if you change your mind, you can call to cancel your loan within 5 days of taking it out and repay only the principal amount with no fees or interest.
Why choose Sunny?
Sunny is different from other loan companies because we have no extra fees, guaranteed. This means late repayments, application fees or administration fees will not be charged and all you are expected to pay back is the original loan amount plus interest. Our interest is charged daily and is capped at a maximum of 0.8% per day, so you don’t have to worry about your payments getting out of control.
We believe in being honest, transparent and fair throughout the whole loan process and we aim to act as a lifeline for our borrowers. This means that if someone is having trouble making repayments, we will work with them to help them get in the clear.
A loan is a completely personal decision and the above guidelines are only recommendations. Depending on your financial situation, a broker may be a better option for you. Either way it’s best to thoroughly research any policies and fine print before applying to a loan.
Ensure you are only borrowing an amount that you are comfortable with paying back and avoid taking out loans on a regular basis, unless completely necessary. Should you need further guidance, please see our Frequently Asked Questions. Alternatively, if you have any questions regarding our direct loans or interest rates, please contact us using our live chat.