What’s the difference between a loan company and a broker?
In terms of borrowing, a loan company actually gives you a loan whereas a broker searches a number of lenders in order to find customers a loan.
A broker doesn’t actually lend you money, but shops around to find a loan company that is willing to give you cash. Brokers are great for certain people who want the best loan for them but don’t want the hassle of finding it. They act like a middle man and can sometimes ask for a fee or charge commission to do the work of finding you the right deal. Some brokers don’t charge a fee, but instead work on commission paid to them by the lender.
A loan company will lend money directly to you if your application is successful; however you have to find the loan company yourself.
How is Provident different to brokers?
Provident is a lender, not a broker. Also unlike many brokers, we don’t charge any extra fees on top of the interest on your loan, so you always know the full cost of your loan. You don’t necessarily need a bank account to apply for a loan with us. Whilst we do use brokers, we don’t work with brokers who charge fees direct to the customer. Instead, we pay commission to a broker so there are no charges to the customer. Read more here.
How Provident is different to other loan companies?
Unlike other companies Provident provides a face to face service. Your Agent will take the time to get to know you and understand your circumstances. There are no hidden charges involved with our loans, so customers know the full cost of their loan upfront.
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