A perennial debate in the industry of short term loans is whether direct lenders are better than brokers or facilitators. Direct lenders are, as the name suggests, independent of any broker or middlemen and deal directly with the applicants. However, many lenders operate through a network of agencies or brokerage firms. Having a broker for short term loans can have some advantages or it could be unwise, depending on what side of the prism you look at it.
Direct lenders work with applicants and they do not have any need to pay a commission or any fees to a broker. This commission that would have otherwise been payable to a broker would be passed down to the applicant in the form of savings, most likely a better loan amount, could be a reduced rate of interest and a favorable repaying term. In effect, applicants get to save a bit of money while dealing with direct lenders of short term loans in UK.
While dealing with a broker, an applicant doesn’t make any payment towards the commission of a broker directly but the brokerage firm does have its fees. These fees are borne by the direct lenders and the cost is passed down on to the customer. In effect, as an applicant you bear the brunt of the arrangement. In some rare cases, the lenders absorb a bit of the cost but never all of it.
Direct lenders may not have enough choices for an applicant. A broker can bring together a number of offers from various lenders. Accordingly, you may want to compare loans in UK and decide. It is one reason why many borrowers prefer brokers.
With Cash Kitty, you would get direct offers and you don’t need to worry about getting a raw deal. At the same time, you would get enough propositions to choose the best short term loans.