Some borrowers want to deal directly with payday lender not brokers, this means dealing with the company that is actually lending the money. The lender is the company that lends out the cash whilst a broker acts on behalf of different lenders.
A broker will usually act as an intermediary between the customer and the payday loan companies. It may not be immediately obvious that you are applying through a broker and under most circumstances will not make any difference whether you deal direct with the lender or not. A broker will however usually receive a commission for sending a customer to a lender although this will not affect the cost of a loan to you. You will be charged the same rate of interest whether you deal direct with the lender or go through a broker.
Depending on the lender that you go through the cost of borrowing a payday loan will generally be on average about 25 or 30 percent. Rather than charging an interest rate lenders usually charge a lending fee that equates to a percentage of the amount borrowed. The charges and loan are generally repaid on the date of your next monthly payday.
There are both advantages and disadvantages to going directly with a lender or through a broker. Going with the payday lenders not brokers means that you can choose exactly who you would like to deal with. However the downside is that you may be turned down by the lender and have to start your search again.
A broker will be able to search the market and apply to several lenders on your behalf. This increases your chance of getting an approval potentially speeding up the time it takes to get your money. The downside is that you cannot choose who you borrow from potentially increasing the cost of your loan.