A payday loan direct lender is a payday loan company that allows and enables you to apply for a payday loan directly with them, as the loan provider rather than via a broker or online loan connection service.
There are various reasons people go to payday loan direct lenders, the main reason being that they want to skip out any intermediate step involving a payday loan broker, which will send them to a direct lender.
However, many payday lenders work with many different brokers who send them the best types of customers for their payday loans, as opposed to many of the applicants that get in touch directly, many of which may not be able to borrow money online instantly with the direct lender in question.
What Do Payday Loan Direct Lenders Do?
Payday loan direct lenders will directly lend money to those applying for a loan and who are accepted. They facilitate borrowers’ ability to borrow a payday loan directly with a loan provider.
They are different from payday loan brokers who work with a panel of lenders and match the borrower to the lender or lenders that are best suited to the applicant. For example, if an applicant specifically needs to borrow 600 dollars or perhaps get a 1000 dollar loan online, a broker can find the best lenders for that specific loan amount.
These brokers act as a middleman between the borrower and the lender and will pass client information to direct lenders in order to find a suitable match.
How Quickly Can I Get a Loan With a Payday Loan Direct Lender?
The speed at which you receive your payday loan from the lender you borrow from will depend on your loan provider as well as things like your credit score, credit rating and credit history. Typically, once your loan request is accepted, with most online lenders giving you instant decisions on your loan amount and loan request, the money is sent directly to your bank account as quickly as possible.
This can sometimes be within as little as 24 hours or even on the very same day.
What Are The Benefits of Borrowing From a Payday Loan Direct Lender?
Finding a payday loan direct lender can mean that you can simply apply for a loan with them and, should you meet their lending criteria and eligibility criteria and be accepted, they can fund the loan amount in full and get you on track with receiving your requested and required loan amount.
A key reason some people seek out a direct lender rather than for example an online payday loans broker is that ultimately, even if they go through a broker and for example get a very specific $400 loan, they will end up dealing with and repaying the payday lender, with the broker not involved in the actual loan and its repayments.
Efficiency of Direct Lenders
Direct lenders of payday loans and any loan will process the entire application from start to finish, without the need to go through third-party loan brokers or lenders.
When they work with a loan broker, the broker will send the necessary and required information to the direct lender, but it is the lender that will take care of the actual loan amount and money which is borrowed and repaid by the loan applicant. Subsequently, direct lenders are often viewed as offering a highly efficient service.
Because the entire payday loan application decision process falls under one loan provider once you are accepted for your loan, there is no need to share your personal information or data with any third parties.
Working with a broker means that your information may need to be passed via a ping-tree, on to various lenders in order to get the best quote.
Sharing your information with multiple lenders means that you might open yourself to receiving excessive phone calls and emails, but it does also mean that you can compare many different payday and other loans at once, rather than having to go from lender to lender yourself. If you work with a direct lender, you may have more control over who has access to your information.
When you work with a payday loan direct lender, you know exactly from whom you are borrowing and where the money is coming from.
Sometimes, the world of online lenders can be overwhelming due to the many options available, and it can be difficult to know who is providing the loan. With direct lenders, you benefit from a straightforward trajectory of funds and can steer clear of any hidden costs or terms and conditions.
What Are The Disadvantages of Borrowing With a Payday Loan Direct Lender?
Going straight to a payday loan direct lender has its advantages but there are also a few drawbacks and disadvantages to using a direct lender when it comes to payday loans as well as all other loans online.
Limited Loan Products
When you borrow money with a direct payday loan lender, you are restricted to the loan products, fees and rates offered by that particular provider only. This means that you might not be getting the most competitive rate on the market. It may also mean that if an alternative to payday loans is more suitable for your needs, the lender may not be able to offer it as it is not something they cover.
When you work with a payday loan broker, it is their job to find you the best loan to suit your needs and can find you the cheapest rates possible. Subsequently, when working with a direct payday loan lender, you could be paying more in the long term.
When you apply for a loan with a broker, typically they will only be paid by the lenders upon sending them a customer whose application is accepted. It is therefore in the interest of the broker to match the right applicants with the direct lender most likely to fund a loan.
Even though you can receive funds quickly once you have been approved for a loan, it can take a lot of time and effort to compare and contrast different loan providers to find the best deal to suit your personal financial situation. If you work with a broker, they save you the time and effort of comparing and contrasting different options in the market.