Direct Lenders vs Brokers

The debate of direct lenders vs brokers has always been brought up when searching for the best loan option for you. If you need to apply for emergency credit, it’s a good idea to weigh up the benefits of direct lenders that offer short-term or payday loans – not brokers handling the application.

Direct lenders cut out the middle man, putting you in control of finding the best short-term loan for your situation. There are a number of reasons why people opt to work with a broker but in this guide, we explore whether they are the best option or not.

What is a Direct Lender?

Being a direct lender means we provide loans directly to you, the customer, without using a third-party lending partner. Getting a loan from PM Loans means you are applying for a loan directly with the company that can actually approve your application and transfer the money you need into your bank account.

What is a Broker?

A broker acts as a middleman that can help you find a loan. Most brokers may have come to exclusive arrangements with the lenders on their panel to offer you a better interest rate than are usually available.

Is PM Loans a Broker?

Here at PM Loans, we are a direct lender as well as a broker. Giving you the best of both worlds.  We offer loan amounts from £50 to £1,500 including payday loans, instalment loans and short term loans. Our loans can be repaid over 1 – 12 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 PM Loans, it is us who will transfer funds to your account and collect your payments. However, if we, unfortunately, cannot offer you a loan, then we can pass your application on to our panel of lenders who are ready to help get your loan approved.

How to tell if you’re dealing with a broker or a direct lender

Sometimes, you may find yourself considering a potential loan 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. However, 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.
  • Check the small print. All short term loans providers must state on their website if they operate as a broker or direct lender. Unfortunately, this is usually hidden away in the small print or buried in their terms and conditions.

Am I eligible for a loan?

It’s a good idea before applying to check you are eligible for a loan with them. Here at PM Loans, we offer short term loans. To be eligible to apply for a loan from us, you must:

  • Be 18 years old or above
  • Have a regular monthly income of at least £500
  • A UK resident
  • Have a working email address and mobile phone
  • Provide your bank and debit card details

What should I consider before applying for a loan?

Before taking on any credit, it’s very important you assess your financial situation. To ensure you don’t fall into an unmanageable situation or experience financial difficulty further down the line. We understand that loans can be required in an emergency situation, to cover the cost of an unexpected expense. However, taking out any loan is an important decision that should be considered carefully.