Unexpected expenses can pop up at any time, and sometimes you may need quick access to cash. When that happens, having quick and flexible borrowing options is useful. In the UK, direct lenders play an important role in providing borrowers with short-term financial options. These can include short term loans, payday loans, and same day loans.
In this blog, we’ll list some of the lenders that offer these loans, discussing their offerings and highlighting key features. We believe it’s important to shop around and compare. This guide will give you some insights that could help you to make lending choices.
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What is a direct lender?
A direct lender is a financial institution or company that provides loans and credit 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
We offer loans at Representative 1271%APR to our users.
At Lending Stream, we offer loans from £50 to £800 for new customers and £100 to £1,500 for returning customers. We offer a six-month repayment period, ensuring a manageable timeframe for repayment. If you are approved for a Lending Stream loan, your loan comes with a fixed interest rate, guaranteeing consistent monthly repayments.
If you’re approved for a loan, we’ll send the cash to your bank in 90 seconds. It may take longer to reach your account depending on your bank’s processes.
Representative Example: Given a Representative APR of 1271%, if you borrow £300 over 6 months at 292% p.a. (fixed), you would owe 6 equal repayments of £96.39. You will repay £578.36 in total.
2. Drafty
Drafty offers two products: Drafty Flex (Representative 96.2%APR variable) and Drafty Loans (Representative 79.9%APR). Drafty Flex, also known as a line of credit, allows you to access the money you need with a maximum credit limit of £3,000.
We also offer Drafty Loans between£1,000 and £3,000, with repayment periods of 12, 18 or 24 months. All loans and credit limits are subject to affordability checks, we will only lend what our checks indicate you can afford.
Drafty and Lending Stream are both brands owned by Gain Credit.
3. MoneyBoat
Specialising in short term personal loans, MoneyBoat allows you to borrow money between £200 and £1,500 (£800 for new customers). They claim they’ll deposit cash into your account around 15 minutes after all checks have been completed. Approval can be the same day, but they don’t guarantee it. You then repay your loan over 2 to 6 months. Their APR is 1267.9%.
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 1266.2%.
5. One Stop Money Shop
The One Stop Money Shop is a Yorkshire-based lender, offering loans between £400 and £2,500. These are repaid over 6-24 months. Their representative APR is 295.60%.
They offer approval decisions within 1-2 hours and money is sent on the same working day.
6. Everyday Loans
Everyday Loans offer loans ranging from £1,000 to £15,000 with repayment terms from 18 months to 5 years. Their representative APR is 99.9%, but it’ll depend on how long you borrow.
You may be asked to visit a local branch for a meeting before they make an approval decision. So this can take longer than an online-only lender.
7. The Money Platform
The Money Platform is a UK-based peer-to-peer lending platform. A peer-to-peer (P2P) lending platform is a website or app that lets people lend and borrow money directly from each other. The Money Platform specialises in providing short term loans. Their loan amounts typically range from £250 to £1000. And the repayment terms are usually between 1 and 3 months. Their representative APR is 839.20%.
If your application is accepted, funds can arrive between 4-8 hours later.
8. Savvy
Savvy offers loans from £300 to £1,200 that 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.
They can normally send money within an hour of being approved. However, they do not send money on Sundays or bank holidays. Savvy offers loans with a representative APR ranging from 332.0% to 1290.2%.
9. QuidMarket
QuidMarket offers loans ranging from £300 to £1,500, with a representative APR of 1298.25%. Repayment terms span 3 to 6 months. During workdays, you’ll get a decision in under 2 hours.
Comparing direct UK lenders empowers you to make well-informed decisions. Before seeking short-term financial solutions, always consider the costs. Also, take into account whether you can comfortably afford repayments before proceeding with any loan.
Advantages of choosing a direct lender
Choosing a direct lender for your financial needs can be a lot more straightforward than using a broker. Here’s why going through a direct lender can be a useful choice:
1. Streamlined process
Direct lenders work without third parties. This results in a more efficient and direct loan application process. You’re applying directly to the lender, rather than having your details sent to them. So, it’s just one application.
2. You know what you’re getting
When you apply with a broker, representative APR rates will be based on multiple lenders. What you actually get offered will depend on your credit score and other factors, so you may end up with a very different deal than the one they advertise.
3. Data protection
Dealing directly with the lender means you’re not giving your data to anyone outside of the lender. Brokers deal with data – they’re a lead generation company. So, if you want to keep your data with as few companies as possible, you may want to focus on direct lenders.
4. Less marketing
We all get sick of emails sometimes. If you apply with a direct lender, you’ll only get the emails you give permission for, from them. With a broker, you could end up getting emails from multiple places because you’re getting them from the lender and the broker.
Securing a loan from UK direct lenders: A step-by-step guide
Securing a loan from a direct lender can be a straightforward process. Here are some guidelines:
1. Research and compare
Look for regulated UK lenders offering loans that match your requirements. Review interest rates, loan terms, and the lender’s reputation via reviews. It’s important to choose a lender that is regulated by the Financial Conduct Authority (FCA). Doing so means they have to adhere to responsible lending practices. You can do this by checking the FCA directory on their official website. Companies show their FCA authorisation number on their site.
2. Check your eligibility
Visit the lender’s website to understand their eligibility requirements. Typically, you’ll need to be a UK resident, aged at least 18, with a steady source of income.
3. Online application
Most direct lenders provide an online application platform. You’ll need to fill in some personal information, income details, and the loan amount you want. 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 and 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 cash sent
If you are satisfied and accept the offer. The lender will then proceed to send the funds to your bank account. How long this takes will depend on the lender. Some do it in minutes, some in days.
7. Repayment
Direct lenders usually set up automatic repayments from your bank account. Make sure sufficient funds are available to avoid any disruptions. Keep in mind that repayments are what affect your credit score.
8. Communication
If you encounter difficulties making payments, reach out to the lender. You can discuss potential solutions or adjustments to the repayment plan. This is a much better solution than missing any payments.
9. Early repayment and fees
Some direct lenders allow early repayment without additional charges. If you can afford to, it may save you money on interest.
Conclusion
When you’re faced with money problems, turning to a direct lender in the UK can help. From secured personal loans to unsecured personal loans, the options are diverse. 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. And if approved, we’ll send the cash to your bank in 90 seconds, depending on your bank’s processes. With fast and flexible loans, we’re committed to providing convenient short-term lending solutions.
FAQs
What is the best payday loan in the UK?
Payday loans can be more expensive than other options. Compare interest rates, repayment terms, and reviews. Prioritise reputable lenders, affordable rates, and transparent terms. This will help you secure the best option for your short-term borrowing needs.
How to get a loan in the UK easily?
To secure a loan in the UK, start by assessing your credit score and improving it if you can. Next, look for an authorised lender that offers the type of loan you need. Make sure you have any necessary documents and information available. And be ready to provide proof of income and financial stability.
Who is eligible for a loan in the UK?
Eligibility criteria for loans in the UK depend on the lender. But generally, you’ll need to be a UK resident with a stable income. You’ll also need to be at least 18 years old for most lenders. Lenders may have specific criteria, so review their terms before applying.
Disclaimer: The information given above is provided for reference only. This is not financial advice. This information is provided only for your reference.
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