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Direct Lender Loans

When searching for a short term loan, you may come across the phrase “direct lender loans”. Borrowing straight from a lender can sound quicker or more straightforward, but it is worth understanding what it really means and what other options are available before you decide.

How much would you like to borrow?
Representative 79.5% Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 3 months. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £570.44, an annual interest rate of 59.97% (fixed) Representative APR: 79.5% (variable). *Subject to lender approval. Cash within 60 minutes is possible, depending on whether your bank supports Faster Payments. Otherwise, funds may take 24–48 hours to arrive.

If you’re wondering what a direct lender loan is, how it differs from using a broker, and which route may What is a direct lender loan

A direct lender loan is when you borrow money straight from a lender without using a broker or intermediary. You apply directly with the company, either online or in person, and they are responsible for assessing your application, providing the funds and managing repayments.

Direct lenders can offer different types of loans, including payday loans, instalment loans and personal loans, depending on the permissions they hold.

How brokers are different

A broker, such as Dot Dot Loans, does not lend money. Instead, we help you search and compare loan options from a panel of authorised lenders. Using a broker can give you access to multiple lenders in one place, which may save time and help you explore more suitable options.

Brokers also use soft searches at the eligibility stage, so checking your options does not affect your credit score. Our service is free and designed to help you find loans that fit your circumstances and budget.

FCA rules for lenders and brokers

Both lenders and brokers in the UK must be authorised and regulated by the Financial Conduct Authority. This ensures firms follow strict standards designed to protect borrowers and promote responsible lending.

Lenders are required to carry out affordability checks to make sure repayments are manageable. There are also caps on costs for high cost short term credit, including a maximum daily interest rate of 0.8 percent, default fees limited to £15 and a total cost cap so you will never repay more than double the amount borrowed.

FCA rules also require transparency around fees and fair treatment of customers who experience financial difficulty.

You can check whether a lender or broker is authorised by visiting the Financial Services Register.

When might someone choose a direct lender

Some borrowers choose to apply directly with a lender because they have used them before, already know the company or feel confident dealing with one organisation. In some cases, familiarity can make the process feel simpler.

However, applying with several lenders individually can lead to multiple hard credit checks. This can affect your credit record, even if your applications are declined. Using a broker first allows you to explore options through soft searches before deciding whether to proceed.

Risks of using a direct lender

Applying directly with a lender means you will only see their offer, even if a more suitable or cheaper option exists elsewhere. If you do not meet their criteria, you may be declined without any alternatives.

Each full application may also involve a hard credit search, which can impact your credit file. For borrowers unfamiliar with loan structures or interest, it can also be harder to compare whether the loan is the right fit.

How Dot Dot Loans helps

Dot Dot Loans is a regulated credit broker. We do not lend money, but we help you compare loan options from trusted lenders authorised by the Financial Conduct Authority. Our service is free and designed to make the process simpler and safer.

We use soft credit searches so checking eligibility will not affect your credit score. By accessing multiple lenders through one application, you can review a wider range of options before deciding what works best for you.

Step by step: how it works

Enter your details online, including how much you want to borrow and what for.

We search our panel and show loan options from FCA authorised lenders.

You review the offers, including repayment costs and schedules.

If you decide to proceed, you complete your application directly with the lender.

The lender carries out affordability checks and confirms approval.

Funds are paid by the lender if approved. Dot Dot Loans is not involved in payments.

You repay the lender according to the agreed terms.

Alternatives to direct lender loans

If a loan is not the right choice, there may be other options. Credit unions can offer smaller loans with fairer interest rates.

If you receive benefits, you may be able to apply for a government budgeting loan or advance.

Authorised overdrafts or credit cards may also be useful for short term borrowing.

In some cases, arranging a payment plan or borrowing from family or friends may help avoid additional costs.

Example

Mark needs £250 for emergency dental treatment. He applies directly with the first lender he finds and is accepted, but later realises the total repayment is higher than other options he discovers afterwards.

Using a broker first could have helped him compare lenders and choose a loan with more suitable terms without affecting his credit score.

Analogy

Going straight to one lender without comparing is like booking the first hotel you see without checking prices elsewhere. It might work, but you could miss a better option.

Using a broker works more like a comparison service, helping you see more choice before making a decision.

FAQs

Are direct lender loans better than using a broker
Not always. A broker allows you to compare multiple lenders in one place.

Is Dot Dot Loans a direct lender
No. We are a credit broker and do not provide loans ourselves.

Will using Dot Dot Loans affect my credit score
No. We only use soft searches when matching you with lenders.

Do brokers charge fees
Our service is free to use.

Can I still apply directly with a lender
Yes, but using a broker first may help you find a more suitable option.

Final thoughts

Direct lender loans can limit your choices and may affect your credit if you apply multiple times. Using a regulated broker like Dot Dot Loans helps you compare options clearly, safely and without pressure.

Dot Dot Loans is a credit broker, not a lender. We help you find payday and short term credit from FCA authorised lenders. Our service is free and does not involve lending decisions or payments from us.