Direct Lender Payday Loans

With so many credit products on the market, it can be difficult to know where to start when looking for a loan.

From payday to short-term loans, and direct lenders to credit brokers, our guide aims to breakdown the jargon and provide information on each of the options that could be available to you, to help you make the best decision for your financial situation.

What is a payday loan?

A payday loan is a sum of money borrowed from a lender, which is typically required to be repaid in full within a four-week/one month period.

Due to their short borrowing window, payday loans are usually associated with higher interest rates.

Do payday loans still exist?

You might struggle to find a payday loan provider nowadays.

In 2015, the Financial Conduct Authority (FCA) imposed new regulations on payday lending. The move was introduced in a bid to help make borrowing fairer and included measures such as increased guidance on repayment warnings, and a cap on the amount of interest and fees borrowers could be charged.

As a result of these changes, the popularity of payday loans decreased, with many existing companies going into administration.

What is a direct lender?

As the name suggests, a direct lender is a company that offers loans directly to borrowers, without the use of a credit broking service.

The lender will complete the entire loan process, from the application and assessment stage to sending the money to your bank account.

What’s the difference between a direct lender and a credit broker?

Using a credit broker could help to take the guesswork out of applying for a loan.

When you apply for a loan with a direct lender, they will check your eligibility for their product only, whereas a credit broker can check multiple loans at once to help you find the most suitable match for your circumstances.

Is searching for a loan through a credit broker better for your credit score than applying directly with a lender?

It’s not possible to say whether one approach is necessarily ‘better’ than another – it all depends on your personal circumstances.

Using a credit broker to help you search for a loan could help to protect your credit score.

Direct lenders will carry out a hard search on your financial history. Undergoing multiple hard searches within a short period of time could have a negative impact on your credit score.

Cashflex is a credit broker. Based on the information you provide on our online form, we’re able to use soft search technology and scan our panel of lenders for a loan to suit your personal needs, which could protect your credit score from multiple hard searches.

Soft searches will only be visible on your credit file to you and the company who carried out the search, and they will not affect your credit score in any way.*

Can I search for a payday loan through Cashflex?

Cashflex does not work with any lenders of payday loans. Instead, the lenders on our panel offer short-term loans with an array of repayment terms to suit you.

Depending on how much money you apply to borrow, you could repay your loan between 3 and 60 months.

Rather than having to repay the total borrowed amount within four weeks, short-term loans enable borrowers to spread the cost of their loan across a repayment plan to suit them.

We’ve included the various available repayment terms based on the amount of money borrowed in the table below.

Loan amount	Available repayment terms
£100 - £900	3, 6, or 12 months
£1,000	3, 6, 12, 18, 24, or 36 months
£1,000 - £2,000	6, 12, 18, 24, or 36 months
£2,100 - £2,400	12, 18, 24 or 36 months
£2,500 - £7,500	12, 18, 24, 36, 48, or 60 months
£7,600 - £10,000	18, 24, 36, 48, or 60 months

How much money can I search to borrow with Cashflex?

The lenders on the Cashflex panel offer loans from £100 to £10,000.

You should never apply to borrow more money than you need or can afford to repay.

Who can search for a loan with Cashflex?

You can search for a loan with Cashflex if you:

• Are over the age of 18;
• Are a UK resident;
• Have a UK bank account with a valid debit card; and
• Have a regular source of income paid into your bank account.

Worried about your credit score? A number of the lenders on the Cashflex panel specialise in loans for bad credit and are willing to consider applications from people with less-than-perfect credit history.

Check your eligibility for a loan before you apply

Our FastCheck eligibility tool will give you an idea of how likely you are to be approved for a loan without affecting your credit score.*

How does the Cashflex process work?

1. Tell us how much money you’d like to borrow and how long for. Our online form should take around 5 minutes to complete.
2. In just 60 seconds, we’ll carry out a soft search and scan our panel of lenders for a suitable match.
3. If we find a loan, you’ll be redirected to the lender’s website. You can find out more about the loan and decide whether you’d like to make a full application.
4. The lender will carry out some further checks, including a hard search.
5. If the lender is happy with the outcome of their checks, you will be sent a loan agreement. You should read this carefully before you choose whether you’d like to sign and return it.

How quickly can I get a loan?

Each lender will have their own payout timeframe. Some of the lenders on the Cashflex panel are able to send your money the same day as your application is approved.

The time it takes for the money to become available in your account will depend on your bank’s policies and procedures.

I’m struggling to make my repayments; what can I do?

If you’ve taken out a loan that you can no longer afford to repay, you should make contact with your lender. While this may feel daunting, it’s important to remember that you will not be judged for your situation. Instead, your lender will work with you to come up with a suitable plan moving forward.

Where can I get advice on money worries and debt management?

Free, impartial, and confidential money and debt management advice can be accessed through a range of charities and organisations, including StepChange, MoneyHelper, Citizens Advice, and National Debtline.

*If you’re matched with a loan and make a full application, the lender will be required to carry out a hard credit search. Multiple hard searches within a short period of time could have a negative impact on your credit score and will remain visible on your credit file for up to 12 months.