A broker serves as an intermediary, helping connect borrowers with a suitable direct lender that can offer the short-term loan they’re seeking. By law, brokers must clearly state on their website that they operate as a broker. Some may charge a fee for matching you with a lender.
A lender, on the other hand, provides the funds directly—assuming you meet their eligibility criteria. If applying through a direct lender, it’s vital to fully understand the loan’s terms and conditions before proceeding.
What Are the Advantages and Disadvantages?
A broker typically works with a range of lenders. When you apply through a broker, your application is assessed against the lending criteria of multiple providers. A reputable broker will then present the most favourable option for your individual situation.
In contrast, a direct lender only offers their own products. While you can still apply directly, they won’t compare their rates against other lenders. If you’re approved, you’ll be offered a loan based on their current terms, regardless of whether it’s the most competitive deal available.
Do APR Rates Vary Significantly?
Absolutely. The short-term lending market—particularly payday loans—has expanded rapidly over the past twenty years. With more consumers turning to short-term credit solutions, lenders have had to compete more fiercely for business. Even providers specialising in poor credit loans are vying for customers.
This heightened competition has generally benefitted borrowers, with lenders offering more competitive rates and occasional promotions. However, the payday loans market is highly dynamic—what’s the best deal today might not be tomorrow. Brokers are often better placed to help in this regard, as they compare multiple lenders to ensure you access the best offer available at the time.
Is a Payday Loan Suitable for You?
Many individuals turn to payday loans to manage temporary financial difficulties throughout the year. That said, they are not designed to serve as a long-term solution. Before accepting any offer, make certain you can meet the repayment schedule and fully understand the loan agreement.
Lender Overviews
Lending Stream
Overview
Operating since 2008, Lending Stream is one of the more established short-term lenders in the UK. It is part of Gain Credit LLC, a subsidiary of Gain Credit Inc.
Loan Amounts
New customers can apply for up to £800, while returning users may borrow up to £1,500.
Repayment Terms
Repayments are made over six months, either through automatic collection on a set date or manually via their website or by phone.
Disbursement Time
Once approved, funds can be deposited in your bank account within 90 seconds, with payments processed 24/7.
Eligibility Criteria
Applicants must be UK residents aged 18+, employed (not self-employed), earning at least £400 per month, and must have a valid UK bank account and debit card. Applicants also need to pass credit and affordability assessments.
Fees
There’s no charge to apply. A £15 fee applies for missed or late payments.
Satsuma Loans
Overview
Satsuma Loans is a trading name of Provident Personal Credit. While the Satsuma brand is relatively new, its parent company has over 135 years of lending history in the UK.
Loan Amounts
Borrow between £100 and £1,000.
Repayment Terms
Flexible repayment plans of 3 to 12 months are available. Early repayment is allowed by requesting a settlement figure.
Disbursement Time
Loans are paid hourly from 6am to 11pm, subject to approval.
Eligibility Criteria
Applicants must be aged 18 to 74, UK residents, and not currently bankrupt.
Fees
Satsuma offers a SmartCheck tool to gauge eligibility without affecting your credit score. There are no hidden fees or penalties, including for late or missed payments.
Solus Loan
Overview
Founded in 2010, Solus Loan is a well-established short-term broker and operates as a trading style of Noveau Finance Limited.
Loan Amounts
Loans are available from £100 to £5,000.
Repayment Terms
Flexible options up to 24 months. Payments can be made via debit card or bank transfer, with the option for early repayment.
Disbursement Time
Approved loans may be paid within 15 minutes, depending on your bank. Most transfers complete within two hours.
Eligibility Criteria
Applicants must earn at least £500 monthly, be UK residents aged 18+, own a valid bank account and debit card, and have no County Court Judgements (CCJs) within the past six years.
Fees
Applications are free, and early repayment is penalty-free. Applications are accepted 24/7 online.
Uncle Buck
Overview
Uncle Buck is the UK’s longest-running short-term lender still in operation, first launching in 2004.
Loan Amounts
Loans range from £100 to £1,000, although first-time applicants are capped at £500.
Repayment Terms
Repay over either 4 or 6 months, with payments taken from a registered debit card.
Disbursement Time
Funds can be sent within 15 minutes between 6am and 11pm. Applications approved after 11pm are processed the next day.
Eligibility Criteria
Applicants must be over 18, employed, UK residents with a mobile number and email address, and have a valid debit card and bank account. Those in or approaching insolvency are ineligible.
Fees
No fee to apply. A £15 charge applies for late payments.
What Happened to Wonga?
Founded in 2006, Wonga quickly rose to dominance as the UK’s leading payday loan provider, pioneering the use of digital technology to streamline the application and funding process. However, regulatory changes and a spike in customer complaints led to mounting compensation claims. As a result, Wonga entered administration in August 2018.
What About QuickQuid, Pounds to Pocket, and OnStride?
Following Wonga’s collapse, QuickQuid—operated by US-based Enova under EuroCashNet UK—emerged as the UK’s largest payday lender. Its sister brands, Pounds to Pocket and OnStride, also gained popularity thanks to widespread TV advertising.
However, they too fell foul of tighter regulation from the Financial Conduct Authority and faced a wave of compensation claims. All three brands ceased trading after going into administration in October 2019.
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