There is a significant difference between those who provide the funds and those who simply facilitate the process. The former represents a payday loan lender, whilst the latter is a broker.

A broker in any industry is essentially a middle man. They work on behalf of a client or applicant to find the best deal available within the market. To do this, the company will often have a list of approved providers, often negotiating special rates to help benefit both parties.

The lender on the other hand accepts all of the risk and much of the reward. This means that they actually provide the decision, stump up the cash and then take the final payment. Each company has their own lending guidelines and parameters to decide which applicants are accepted and which aren’t. They are also free to set their own rates of interest and apply any charges that they deem necessary or indeed appropriate.

These fees are generally to cover the administrative processes undertaken by the lender. For instance, some will charge a few pounds to provide an instant bank transfer. For any borrowers seeking a loan, it is important that you review the full terms before applying, otherwise you may get caught out later when you find yourself spending more than you expected.

Brokers, as a general rule, won’t tend to have any fees attached with their service – certainly none that the applicant should cover. Those who do look to charge you should be avoided, purely because they are unlikely to deliver a service that is any different or better than the ethical companies that don’t. In the most part, any money that they do make will come from the lenders, who pay on the basis of successful referrals.

As a result of the close relationship between both the brokers and the lenders, there is very little disparity between the amount of interest charged, or indeed many other aspects of the service. Therefore it is a choice that only the borrower can make, based on the information provided on their respective websites. Whilst there are a number of businesses that offer this kind of service offline, the Internet is still the medium of choice for many.

The payday loan industry is largely self regulated, which is why it is important that applicants vet companies effectively and only use those that they know they can trust implicitly. So if you’re looking to apply for the first time, it’s always worth seeking recommendations or carrying out some checks to see which lenders or brokers are likely to provide you with the best service and price.

The primary advantage of choosing a broker over a lender is that there is more flexibility about the type, size and cost of the loan. Most individual lenders will have a fixed price as well as having their own stipulations on what constitutes a successful applicant. This may mean that you find yourself getting rejected a number of times or potentially spending more in charges. By going straight to a broker, you stand a much better chance of getting accepted first time, purely because your application will be sent instantly to a wide range of lenders.

So whilst there are clear differences between those who lend and those who broker payday loans, there are fundamental similarities too. There are some companies who offer high levels of service for their customers and are entirely ethical, then of course there are those who don’t. It’s not exactly luck of the draw, as there is plenty that you can do to research individual businesses and find out what their credentials are – either through independent reviews or industry accreditations. However, the choice of lender or broker is one that is fully down to personal taste and circumstances.

Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends Paydaypower.co.uk

Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends http://Paydaypower.co.uk

Author Bio: Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends Paydaypower.co.uk

Category: Finances
Keywords: payday loans, same day loans, loans, UK, finacne