Direct loan lenders are financial institutions and private entities offering short-term loans, like payday loans. They offer these loans directly to the borrower without any third-party lending partners and are often not associated with a bank or credit union. You can get your loan almost instantaneously instead of a credit broker promising you to find a loan only after submitting financial information. That means anyone facing ‘serious money issues,’ even if they have a bad credit score can get the funds they need.
A payday loan lender will confirm your income and checking account information, then give the cash in as little as 15 minutes at a physical store or do the transaction online via an electronic transfer. The lender will then ask for a signed check or permission to withdraw the money from your bank account electronically when you reach your “payday.” Payday loans are often charged immediately after your next payday, usually between two weeks and one month.
If the loan gets issued at a physical store, the lender will usually make an appointment for you to return and pay when your loan is due and if you don’t show up, they will run the check and withdrawal for the total loan amount plus interest charges. They don’t usually send warning late repayment notifications. Meanwhile, online direct lenders will initiate electronic transactions, meaning online payday loans can go through them, allowing them to make decisions about loans, brokers and sell your loans to the highest bidder.
Although borrowing from direct lenders is an excellent way to get a short-term loan for emergencies, it may cause you serious money problems down the line if you aren’t careful enough. They carry risks, but if you need to take a payday loan, choose an authorised and regulated by the financial conduct authority lender to avoid paying for added costs and the risk of fraud.
List of Direct Lenders UK
With that said, here are the best direct payday lenders in the United Kingdom, giving you a comparison of each one to find the best short-term loan for you with ease.
Auden is a trusted name in the English lender community, offering short-term loans ranging between £200 and £500. The company requires repayments to be made over three months regardless of how much you borrow, meaning you pay 0.21%per day in interest, below the FCA cap. It’s one of the cheaper short-term loans available and never charges other fees for their services. To apply for Auden, you’ll need to complete your application online on their website and give them personal information like your financial standing and phone number. If successful in the application, you can get your funds in a short time.
The Iwoca company provides flexible credit to borrowers across Europe, allowing them to repay their debt or make any purchases. It’s one of Europe’s leading fintech lenders, utilising technology to remove costs and complexities caused by traditional financial services, offering instant decisions and no upfront fees—allowing you to get the funds you need hassle-free. You can apply for a loan on their website online or at their physical branches scattered throughout Europe.
Liberis is a business-friendly finance company that offers policies, including no penalty charges, late fees, and fixed or exact repayment amount every month. These mean borrowers can concentrate on their jobs or running their business while paying off their debt in time or buying the upgrade they need. Its business cash advance loan is dedicated to small business needs, ensuring they make payments in line with their cash flow.
One of the longest-standing lenders in the high-cost and short-term loan sector is Mr Lender, offering payday loans and short-instalment loans around £500 and £1000. When it comes to cost or price comparison, Mr Lender advertises a representative example of 1239.2% annual percentage (APR), meaning as you pay off your borrowed loan, the interest rates get recalculated based on your capital. Thanks to that, the amount of interest and amount of fixed monthly repayments reduce as you move on with your loan term. You can apply for a loan on their website or search for their physical stores near your location.
However, if you’re considering taking a Mr Lender loan, the short-term loan issuer warns that late repayment can cause a bad rap on your credit life, making it more challenging for you to borrow down the line. If you’re struggling to make repayments on time, ensure to let the company know as they can proactively work with you to limit the damage. Use their approachable team to your advantage and ask what short-term loan plan would work best for your specific needs.
Lending Works offer one of the most competitive representative APRs in the peer-to-peer lending sector. Like any other lender, they use personal circumstances to determine whether an application will be accepted and what interest rate they’ll receive. However, though they have good credit, they’re relatively slow and take them to review applications for a whole day before making an offer. They charge a borrower’s fee, reflecting within your fixed monthly repayment figure, which varies for each borrower.
Even when you compare their relatively slow process to other lenders, they’re among the most praised lenders in the United Kingdom. You can apply on their website, and it’s relatively easy to use. Repayments usually take months, depending on the agreed terms.
Lendable offers short-term loans to customers with less-than-ideal credit scores, keeping in this mind, their representative APR may be competitive. Still, the interest rate they offer ranges between 7.5% to 50%, depending on several factors. Customers can complete the simple application via their website, providing a personalised quote, helping you conduct a price comparison among other lenders with ease. However, as it’s only a ‘soft search,’ it won’t leave a mark on your credit rating, but it gives you an idea of the type of interest rate you may receive. Keep in mind that they may still change after completing the actual credit search.
Lendable is one of the most transparent companies out there, allowing you to repay loans early without any penalties or additional charges. Plus, if they can’t lend you the money, their website will redirect you to a price comparison site where you can compare similar lenders to Lendable. Just make sure the organisation has its company number, registration number, trading name, and other crucial information indicated on their website to avoid fraud.
George Banco is one of the most flexible lenders in the UK, offering short-term and long-term loans of £1,000 to £5,000 at a representative example APR of 61.8%, lasting 12 months to 5 years. The company also provides guarantor loans of £500 to £10,000 where you can repay in the same timeframe with a representative APR of 49.7%. Any customer can virtually borrow their loans, even those with a bad credit history. Still, you mustn’t be under the individual voluntary arrangement (IVA) or bankruptcy to apply for their loan.
There are several terms to meet for an application to be considered, including standard personal information alongside your financial and credit status. George Banco makes decisions in minutes after applying and emailing the agreements to the customers and their guarantor. You can check their website at any time and sift through the number of loans available on their list to see which would work best for you. Doing this also helps you compare their rates against other lenders.
Buddy Loans is a lender offering identical products when you compare them to other lenders. However, they offer some of the best competitive rates available on the list. Plus, their online accounts dedicated for customers can make the application process easier to manage once you’ve set up, giving you clear visibility of your loan. When you choose this lender, you won’t be facing any fees for fast payments or settling loans early. Plus, their customer service is responsive.
However, if you think you don’t have the cash to make the total monthly repayments needed, it’s better to find services elsewhere. When you miss out, the results are your friends and family picking up after the pieces for months or even years.
If you’re looking to borrow short-term loans, choose MoneyBoat.co.uk. The company offers one of the cheapest loans you can receive with an interest rate of a mere 0.7% a day rather than 0.8%. They don’t charge additional fees for arranging the loans or repaying it early, but they charge for missed payments. However, they’re very transparent when it comes to these. Use of their transparency and ask what would be the ideal option for you. You can pay off their total loan repayments in around 2 to 6 months, depending on how much you intend to borrow.
You can borrow around £200 to £1,500 and make an account and use it on their website, allowing you to see their terms and reference number, ensuring optimal data protection—helping you see the long lists of programs and the cost of each one.
Most individuals and small businesses in the UK get loans when dealing with money problems for help go directly to a ‘direct lender,’ allowing them to receive fair short-term loans to address their money issues. Some of the country’s best ones are those mentioned. All of them are regulated by the financial conduct authority, meaning they make everything transparent for customers and ensure optimal data protection—and they won’t get exposed to “rogue” operators.