Lending Companies and Direct Lenders
Majority of borrowers who go to direct lending companies are people who aren’t able to secure funds from traditional sources such as banks, credit cooperatives or debit cards. They came about because people needed fast cash with the least amount of requirements and documents. It’s also a way for people with bad credit ratings to borrow money, at least for the period of time that they need it.
A lot of people say that lenders make a killing from interest rates, but what many people fail to realise is that direct loan companies carry a huge burden; the borrowers can run off anytime. That would be the reason behind the verification checks. The lenders need to at least verify that the borrower really does work at the company or work site that he has mentioned in his application.
If you’d rather borrow from a reputable bank, you may be tempted to get a high street loan (which may be more expensive), but did you know that some online banks are owned by high street lenders? For instance:
List of Payday Loan Companies
|Online loan company||Parent loan companys|
|Intelligent Finance||Lloyds TSB Group|
|Halifax||Lloyds TSB Group|
|PaydayLoansNow||Borrow up to £5,000|
Not everyone can apply for this kind of lending (because of bad credit). If you just need to borrow for an immediate emergency, consider applying with us by clicking the apply button above.
Take note though, it is not the same as a background check or prior payment history investigation. Here are the steps lenders undertake to complete the verification process:
- Photo Identification:
A borrower needs to produce any government issued identification card such as social security and driver’s license. In some cases, an ID is considered acceptable.
- Paycheck Stub
A pay cheque stub would be an important aspect of the verification process. People who wish to borrow money from new lender companies should have copies or their pay cheque or pay cheque stubs with them. Some lenders ask for payslips from the last two months. This is used for two things, to confirm the details in the identification card and see how much the applicant is earning. Remember that these funds are dependent on how much you make: the higher your salary, the bigger amount available in loans.
- Employment Verification
Regardless of whether you apply for funds online or do it at a brick and mortar office, you will still be asked to complete an application form. Here, you must state where you are currently employed, your company’s address and contact number. The lenders do call to verify that you really are employed there and are on the active payroll. This is also the time when the lenders introduce themselves to the head of HR or supervisors and managers in case there are more staff or personnel who may be in need of similar products.
- Bank Account:
Finally, lenders check and verify that the account number provided by the borrower is correct and active. Once it is approved, the lenders deposit the amount being borrowed to this account. At the same time, some borrowers make arrangements to have their payments automatically deducted from their bank accounts, more convenient than withdrawing money and then going to the bank to deposit it to the account of a loan company. Automatic debits also assure that the payments are made on time.
One of the main things that attract people to UK loans is the speed of processing. Traditional applications used to take at least a few days plus a couple more working days before the funds are finally released. Funds can be processed and released within the day and even within 30 minutes if your details are already in the company’s database. If you prefer, you can also drop by the office in person to pick up your cheque.
Is My Information Safe?
Since the application process involves filling out forms that contain personal details and bank information, some people have actually hesitated with their fund applications. However, it is good to note that lending companies go to great lengths to protect the customer’s privacy and his personal information. This prevents misuse of the said personal data or possible identity theft. This is done by using a 128-bit Secure Socket Layer (SSL) encryption technology. If that sounds too complicated, just look for a “lock” symbol near their URL. The lock signifies that the site is using encryption and other means to protect all the data that they receive.
An important step undertaken to put the borrower’s mind at ease when they log in and use the website for their fund application.
If you have any questions about instalment loans and mortgages, you can get in touch with any of our representatives. Try payday loan companies (also know as loan companys) in the UK that specialise in fast processing as well as poor credit.