Guide to short term lenders and brokers

Guide to short term lenders and brokers
Cash Lady
Cash Lady guide to short term lenders and brokers
  • I need a short-term loan, should I use a broker?
  • Which lender should I use?
  • What is a broker?
  • Do brokers charge fees?
  • Can I use a broker even if I have bad credit?
  • Increase your chances of approval first time
  • Where can I find a broker?

What is a short term loan broker?

A short term loan broker is an FCA approved credit broker that specialises in short-term borrowing. Short term credit brokers are regulated by the Financial Conduct Authority and help borrowers by matching their loan application with the most appropriate loan provider – a process that is usually carried out without the need for a hard credit search.

What is a short term loan provider?

A short term loan provider is an FCA regulated lender that specialises in providing short-term credit, such as payday loans or instalment loans.

Available online and often on the high street, short-term lenders offer alternatives to mainstream finance providers, such as banks and building societies that typically only offer longer term finance solutions.

I need a short term loan, should I use a broker?

Short term loan brokers can make your life easierWhen you need to borrow money to cover an unexpected financial emergency or tide you over until payday, making a decision about which lender to use can feel overwhelming.

With so many short-term loan providers to choose from, each lender offering their own unique products and/ or services, it is often difficult to know the best place to start.

This is where a credit broker comes in.  

Acting as an intermediary between you and the lender, a credit broker can help ease the loan application process and match you with the financial solution that’s right for you.

What happens if I have a bad credit score?

A credit broker will always aim to match you with the lender most likely to approve your loan, which can be particularly helpful if you have a less than perfect credit score.

Not only will this save you time searching for the right provider, it can prevent unnecessary damage to your credit file, often caused by submitting numerous applications directly to lenders, or having too many applications for credit refused.

If you would like to learn more about how lenders score you based on your credit file,  or how to improve your credit, then start here. Read this article for more information about bad credit loans in the UK.

When should I consider Short-term borrowing

There are many reasons why you might need to access a short-term loan. Unexpected home repairs, a broken-down car or a family emergency, could mean that borrowing money is the only way out of a difficult financial situation.

If you have had problems with poor credit in the past, or worry that you won’t qualify for finance from a mainstream lender, such a bank or building society, then there are several types of loan that may be available to you.

Short-term loans are typically more expensive than loans from mainstream finance providers and so should only be considered if you’re certain that you can cover the repayments in full and on time.

What are Payday Loans

Usually payday loans have a short duration

Payday loans typically have a very short duration. Intended to tide you over until pay day, they’re quick to process and can provide emergency funding, usually around £80 – £500, until you receive your next monthly or weekly pay packet.

It’s advisable that you repay as soon as you can, to prevent spiralling interest charges from gathering on the outstanding debt.

The cost of this type of borrowing loans is high compared with mainstream finance. Interest is normally charged at around £24 for every £100 that you borrow, depending on the lender that provides your loan.

Payday loans vs Short term small loans

If the amount that you need to borrow is relatively small, from £80 – £1000, and you want to repay quickly, but not as quickly as with a payday loan, then short term small loans typically offer a repayment period between 3 – 6 months.

While the advertised APR is often lower than it is on payday loans, the amount of interest that you pay may be higher overall because of the longer duration of the loan.   

Which lender should I use?

Mainstream finance providers, such as banks and building societies do not typically offer short-term credit, instead providing longer term finance solutions.

Short-term lenders can be found online, on the high street and over the telephone, with many of them specialising in certain types of loan, such as payday lending or instalment loans.

They will all have different lending criteria but typically you will usually need:

  • An income of at least £500 a month
  • To be a UK resident
  • At least 18 years of age

Finding the right loan provider for you

A short term loan broker can often help to make the application process easier and ensure that you’re matched with the right lender, based on your own circumstances and budget.

respected and fca authorised lenders in the ukSome of the most recognised (FCA-authorised) short-term lenders in the UK are:

What are the Benefits of a credit broker?

Whilst a lender processes your loan and provides the funds, a broker introduces borrowers to lenders and advertises financial products on their behalf.

A broker can do a lot of the legwork for you when it comes to finding a loan that suits your needs and budget, which can save you both time and effort.

The broker benefits from the transaction because they receive a commission from each successful application.

In this way, the short term loan broker is only successful if they can successfully place their customers with the right loan provider.

Access a wide portfolio of lenders

Credit brokers usually work with a broad panel of lenders, some you may not have heard of and others that work exclusively through specific brokers.

This saves you having to research different lenders and give you a greater chance of finding the one that’s right for you.

Do brokers charge fees?

Do credit brokers charge fees?

Commission and fees

Different brokers work in different ways, with some passing the fees for their services onto the lender and others charging the borrower.

At Cashlady we never charge any fees for our services so they are always 100% free.

When considering a short-term loan broker, ensure that you check their fees and commission structure to avoid any unexpected charges.

FCA regulations for credit brokers

Like short-term lenders, brokers must adhere to regulations set by the Financial Conduct Authority (FCA) that are there to protect you, the borrower.

Brokers must make it clear that they are a broker and not a direct lender.  They should also be transparent with customers about who they are dealing with, what fees will be payable, and when and how the fees will be due.

Read more about the FCA rules for credit brokers here.

Can I use a broker if I have bad credit?

A broker can often be the best way to apply for a small loan or a payday loan if you have bad credit.

If you have a poor credit score, no credit history at all, or a bankruptcy, Individual Voluntary Arrangement (IVA) or County Court Judgement on your credit file, then you may struggle to have your application approved when applying directly to certain lenders.

Lenders decide whether to approve applications based on their own specific criteria, which could be your age, income, credit history, or other factors that as a borrow borrower, you simply wouldn’t know.

Due to regulations from the FCA, they must always ask about your regular income and outgoings to check that you can afford a loan, and 99% of the time they will also run a credit check.

Whether they accept borrowers with poor credit depends on the individual finance provider.

Why a broker can help

If you submit several applications directly with different lenders, then most of them will run a credit check as part of their application screening process.

Repeated checks leave footprints on your credit file, which can act as a red flag, indicating to other lenders that you’re desperate for credit and aren’t managing your finances properly.

They might question your ability to repay any money that they lend you, with them declining your application or offering you an inflated rate of interest because they consider you a risk.

How to increase your chances of a loan approval

Applying for a small loan with Cashlady

The process for applying for a loan with Cash Lady is simpleAn experienced broker, such as CashLady, knows the short-term loans industry deeply and importantly, fully understands what each lender looks for when considering applications.

When you complete our simple online application form it will instantly be shown to our panel of up to 15 loan providers.

Within a couple of minutes, you should receive a decision on your application and if approved, you will be matched with the lender most suited to your current situation and financial needs.

As Cashlady is a loan broker, we don’t perform credit checks and so for the final part of the application process, the lender will perform affordability checks, including most likely a credit check.

The online application form

Applying for a short term loan with Cashlady couldn’t be simpler.

We will need to know:

  • How much you wish to borrow?
  • How long for?
  • Some basic personal details

Because our system instantly sends your request to several lenders at once, the acceptance rates are normally much higher than going directly to a single lender and the results can also be much faster.

You can normally expect an approval or rejection based on the responses we get from our lenders, in less than 2 minutes.

What are my options If my loan application is declined?

If we cannot find a lender to approve your loan then there is the guide what you should do if your application is declined, or you can consider other options. These include:

It is strongly recommended that you also access your credit file and start taking steps to improve your credit rating.  You can receive free support and advice from the Money Advice Service and Citizens Advice.

Advantages of using a short-term credit broker 

  • Fewer footprints on your credit file – you will usually only make one application
  • Save time – we’ll find the lender most likely to approve your loan
  • Less rejection – minimise the chances of harmful rejections on your credit file
  • Find a trusted lender – all our lenders are reputable and FCA approved

Disadvantages of using a broker

  • Some brokers charge fees (not Cashlady! We take our fees from the lenders who pay us for successful loan introductions)

Where can I find a short term loan broker?

If you decide that a broker is the best way to access the right loan for you then try searching online for UK based credit brokers.

With so many to choose from, it is important to select a credit broker that is FCA approved and well established. Using a business review website, such as is a good way to research the market and access honest reviews from previous customers.

If you would prefer to meet with a person, there are plenty of high street brokers available too, you can search for these locally both online and in the telephone directory and by seeking recommendations from family and friends.

Apply for a loan with Cashlady

We have been helping customers find short-term finance solutions since 2008, working closely with some of the best-known lenders in the industry.

Whether you are looking for a payday loan or a short term loan, we can help you find the right solution through our quick online loan application process.

Apply today to find the right lender and short-term loan for you.



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See the CashLady for useful information related to payday loans, financial management tips and more.

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