{"id":26613,"date":"2023-04-06T15:00:40","date_gmt":"2023-04-06T14:00:40","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26613"},"modified":"2023-04-06T15:00:42","modified_gmt":"2023-04-06T14:00:42","slug":"difference-between-broker-and-lender","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/difference-between-broker-and-lender\/","title":{"rendered":"What is the Difference Between a Broker and a Lender?"},"content":{"rendered":"\n<p>If you wanted to take out a short term loan, <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/payday-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>payday loan<\/strong><\/a>, <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/bad-credit-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>bad credit loan<\/strong><\/a> or any other type of loan, chances are you\u2019d go online and <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/\" rel=\"noreferrer noopener\">choose a loan company<\/a><\/strong>. But do you know who you&#8217;re talking to &#8211; is it a broker or a direct lender? What\u2019s the difference?<\/p>\n\n\n\n<p>Here we\u2019ll find out what they both are, and we\u2019ll look at which one\u2019s best.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2a7ed66231\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2a7ed66231\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/difference-between-broker-and-lender\/#whats_a_broker\" >What\u2019s a Broker?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/difference-between-broker-and-lender\/#whats_a_direct_lender\" >What\u2019s a Direct Lender?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/difference-between-broker-and-lender\/#which_is_best_%e2%80%93_broker_or_direct_lender\" >Which is Best \u2013 Broker or Direct Lender?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/difference-between-broker-and-lender\/#is_lending_stream_a_direct_lender\" >Is Lending Stream a Direct Lender?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/difference-between-broker-and-lender\/#in_summary\" >In Summary<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"what-s-a-broker\"><span class=\"ez-toc-section\" id=\"whats_a_broker\"><\/span><strong>What\u2019s a Broker?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you apply for a loan through a broker, you\u2019re giving your details to a middleman. It\u2019s an extra step you take in your loan application process. Loan brokers don\u2019t lend you the money themselves.<\/p>\n\n\n\n<p>The way brokers operate is that they have a list of loan companies that they work with. They take your personal details and information about the loan you want. They then match you up with one of the lenders on their list that you\u2019d be eligible to apply with.<\/p>\n\n\n\n<p>If you go ahead with the lender they suggest, you then have to submit a full application with that lender. You won&#8217;t find out if your loan\u2019s been approved until you&#8217;ve completed this next step with the lender.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-s-a-direct-lender\"><span class=\"ez-toc-section\" id=\"whats_a_direct_lender\"><\/span><strong>What\u2019s a Direct Lender?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With a direct lender, the loan application process is more straight forward. You only give your details and loan requirements to one lender. You apply directly with the company who\u2019s going to lend you the money if approved. There\u2019s no one else involved in your loan application process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"which-is-best-broker-or-direct-lender\"><span class=\"ez-toc-section\" id=\"which_is_best_%e2%80%93_broker_or_direct_lender\"><\/span><strong>Which is Best \u2013 Broker or Direct Lender?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you\u2019re taking out a short term loan, you&#8217;ll want to know which is best &#8211; a direct lender, or a loan broker. Here, we can give you a few tips to help you decide.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When you apply with a loan broker, your personal details are passed on from one company to another. Doing this adds an extra element of risk with how your information is shared. It also makes the application process longer.<\/li>\n<\/ul>\n\n\n\n<p>When you apply with a direct lender, your information stays in one place. You can be safe in the knowledge that your personal details aren\u2019t going to be shared with anyone else. You find out if you\u2019re loan\u2019s approved quicker too.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Brokers can pass on your contact details to other third parties. This can lead to you being contacted by companies you haven\u2019t applied for a loan with. Being badgered by companies trying to get you to apply with them can be overwhelming.<\/li>\n<\/ul>\n\n\n\n<p>You wouldn\u2019t have this problem with a direct lender, they won\u2019t pass on your details on to any third parties. The only contact you\u2019d have would be directly from them.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Brokers can sometimes charge you a fee for their services. Any fee a broker charges you would be on top of any charges you have to pay on your loan.<\/li>\n<\/ul>\n\n\n\n<p>With direct lenders, all their fees and charges are made clear before you submit your application. They tell you exactly how much your loan will cost upfront, without hiding anything from you.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Brokers don\u2019t know you as well as a direct lender would. This is because a broker only takes the information, they need to help them match you to a lender.<\/li>\n<\/ul>\n\n\n\n<p>When you apply with a direct lender, they\u2019re able to access more information about you. Especially if you\u2019ve borrowed money from them before. This way the direct lender is more informed when making their lending decision.<\/p>\n\n\n\n<p>It makes sense that applying for a short term loan with a direct lender is the best option. There are different <strong><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">types of loans<\/a><\/strong> which a direct lender can provide to you. The information you receive about your loan is clear. Because you\u2019re dealing directly with your lender, you can ask them any questions and get straight answers. Having that one to one contact with your lender makes things easier. It&#8217;s also reassuring knowing that your information is being handled safely.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"is-lending-stream-a-direct-lender\"><span class=\"ez-toc-section\" id=\"is_lending_stream_a_direct_lender\"><\/span><strong>Is Lending Stream a Direct Lender?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, Lending Stream is a <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/short-term-loans\/\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/loans\/short-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">short term loans direct lender<\/a>. There\u2019s no middleman with us, and we keep the application process fast and easy with a Representative 1333% APR. We understand that short term loans are often needed in an <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/emergency-loans\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/loans\/emergency-loans\/\" rel=\"noreferrer noopener\">emergency<\/a>. That\u2019s why, if your loan\u2019s approved, we send the money to your bank in under 90 seconds. Lending Stream is a direct lender. We won\u2019t share your details with any third parties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"in-summary\"><span class=\"ez-toc-section\" id=\"in_summary\"><\/span><strong>In Summary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s important that you check who you\u2019re dealing with when applying for a loan \u2013 a broker or a direct lender. Make sure you know the difference when you apply. Taking out a loan with a direct lender like Lending Stream keeps things simple. It\u2019s quicker, easier, and you know who you\u2019re talking to.<\/p>\n\n\n\n<p>Borrowing money is a big decision. Having a loan can ease your short term cashflow problems so long as you do it right. Make your borrowing decisions wisely, and only take out what you can afford to pay back.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> Please note, we are not providing financial advice. Our blogs are written for informational purposes only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you wanted to take out a short term loan, payday loan, bad credit loan or any other type of loan, chances are you\u2019d go online and choose a loan company. But do you know who you&#8217;re talking to &#8211; is it a broker or a direct lender? What\u2019s the difference? Here we\u2019ll find out [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26614,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26613"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26613"}],"version-history":[{"count":3,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26613\/revisions"}],"predecessor-version":[{"id":27227,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26613\/revisions\/27227"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26614"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}