The Difference Between Borrowing Money from a Loan Company and a Broker

A broker doesn’t lend money, but instead shops around to identify a loan company willing to lend to a third party like you.

After that, the process of borrowing money happens when the lender, subject to you successfully completing an affordability assessment, issues the loan to you directly.

What the broker does is search for a suitable lender to offer you loan options that match what you want in the circumstances in which you find yourself.

Using a Broker to Borrow Money

If you are interested in pinning down the ideal loan but don’t want the trouble of locating it yourself a broker, like Fresh Loan, may work well for you. When it comes to money, savings, loans, finance, Fresh Loan acts as a middle man. We will review your needs and consider different lenders to pinpoint the arrangement that is most suitable for you.

Brokers need to be authorised and regulated by the Financial Conduct Authority. They are also required to make it crystal clear that they’re not a lender themselves. Fees must be disclosed upfront as well as any terms of payment.

The features of any loan and the relevant terms and conditions must be explained.  This includes the time you will be expected to be making repayments along with how much you’ll be paying.

Brokers also must reveal the term, the total repayment amount, the interest rate, and any APR plus what your rights are in terms of withdrawing from the process. Brokers also need to disclose the commission they may receive from the lenders they locate.

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Borrowing Directly from a Loan Company

When you borrow directly from a lender, you have to find and choose the lender yourself and then handle all the communications with them directly. You will have to complete individual loan applications with each lender and provide information about personal and financial circumstances including your income and expenditure.

When each application is completed, the lender will carry out checks relating to affordability and creditworthiness to establish if a loan is suitable for you throughout the loan’s term. Your Credit Reference File will be scrutinised. 

Lenders should be authorised and regulated by the Financial Conduct Authority.

Broker or Lender?

It’s up to your preference. Brokers like Fresh Loan can save you a lot of work by searching around for the right loan on your behalf. When it comes to money, savings, loan, finance, Fresh Loan is a specialist.

Regardless of what you decide you should always make sure you agree to a loan you can afford and that will not cause you financial difficulties.  Don’t forget to ask about fees and charges.

The Difference Between Borrowing Money from a Loan Company and a Broker

A broker doesn’t lend money, but instead shops around to identify a loan company willing to lend to a third party like you.

After that, the process of borrowing money happens when the lender, subject to you successfully completing an affordability assessment, issues the loan to you directly.

What the broker does is search for a suitable lender to offer you loan options that match what you want in the circumstances in which you find yourself.

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Using a Broker to Borrow Money

If you are interested in pinning down the ideal loan but don’t want the trouble of locating it yourself a broker, like Fresh Loan, may work well for you. When it comes to money, savings, loans, finance, Fresh Loan acts as a middle man. We will review your needs and consider different lenders to pinpoint the arrangement that is most suitable for you.

Brokers need to be authorised and regulated by the Financial Conduct Authority. They are also required to make it crystal clear that they’re not a lender themselves. Fees must be disclosed upfront as well as any terms of payment.

The features of any loan and the relevant terms and conditions must be explained.  This includes the time you will be expected to be making repayments along with how much you’ll be paying.

Brokers also must reveal the term, the total repayment amount, the interest rate, and any APR plus what your rights are in terms of withdrawing from the process. Brokers also need to disclose the commission they may receive from the lenders they locate.

Borrowing Directly from a Loan Company

When you borrow directly from a lender, you have to find and choose the lender yourself and then handle all the communications with them directly. You will have to complete individual loan applications with each lender and provide information about personal and financial circumstances including your income and expenditure.

When each application is completed, the lender will carry out checks relating to affordability and creditworthiness to establish if a loan is suitable for you throughout the loan’s term. Your Credit Reference File will be scrutinised. 

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Lenders should be authorised and regulated by the Financial Conduct Authority.

Broker or Lender?

It’s up to your preference. Brokers like Fresh Loan can save you a lot of work by searching around for the right loan on your behalf. When it comes to money, savings, loan, finance, Fresh Loan is a specialist.

Regardless of what you decide you should always make sure you agree to a loan you can afford and that will not cause you financial difficulties.  Don’t forget to ask about fees and charges.

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