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The rising demand for personal loans in the UK is a consequence of the shortcomings of the traditional banking sector. How so? With so many Britons living from one paycheque to the next, it is only a matter of time before money problems crop up.
It could be anything that results in the need for a few extra quid between paycheques. An emergency visit to the vet, maintenance of your car, a chipped tooth from a football game, a shortfall in the rent money, an unexpected going away party for a friend or relative. You can imagine the many possibilities that could warrant a short-term loan. The reason that High Street banks fail in this sector is not that they are incapable of providing the necessary financing – it’s that they are unwilling to facilitate personal loans to UK clients because of regulatory constraints.
When you’re ready to get a loan quote from a lender, you have several options available to you. High Street banks are one of them. Unfortunately, the red tape required by banks serves as a disincentive for clients. Banks make you jump through hoops to qualify for their loan products. They love to issue personal loans to clients, but they do so on their terms.
Banks typically require you to show mounds of paperwork, comply with all sorts of gobbledygook, and on top of that they expect you to wait several days to be approved. When you have an emergency, and you don’t have a credit card, or any cash in hand, the last thing you can afford to do is wait for your money.
That’s where short-term loan direct lenders come into the picture. These credit providers are geared towards fast, efficient processing of personal loans in the UK.
For starters, you will avoid all the headaches and hassles that we have just listed above. True to form, you may pay a higher price when you go with short-term loan direct lenders, but you’re paying for the convenience of quick and easy approval. This sector has rapidly developed over time, as evidenced by the latest CMA Report in the UK. The short-term credit sector includes a range of providers, including payday loans companies. This component of the financial system has been in operation for several years, and it has blossomed into a thriving enterprise.
There are many reasons why clients prefer it to traditional bricks and mortar banking operations. For starters, you can apply for personal loans online. There’s no need to frequently visit your local bank branch in Cornwall, Seven Oaks, London, Brighton, Lancaster, Manchester, or Liverpool. You simply power up your PC, Mac or mobile device and make an application online. It couldn’t be easier. Comfort and convenience rank highly with customers, and the best short-term loan providers have really capitalised on this aspect of their operations.
There are many other benefits available to clients, including automated risk processing. This means that AI systems can instantly run your credit and determine your eligibility for a payday loan. The process doesn’t take hours, days or even weeks. It is completed instantly. Once you are approved for a loan amount over a timeframe, such as £100 over 3 months, you will be able to browse the terms and conditions of the loan offer and electronically sign the document. Once you sign online, the loan is completed and the money is sent to your account, normally within 48 hours.
The loan provider will then process the loan direct to your bank account. Loan collections are also conducted online, via CPA (Continuous Payment Authorities). Short-term loan providers offer additional benefits that banks typically don’t. They have more leeway when it comes to approving or rejecting clients for loans. Credit scores are important, but they are not the be-all and end-all for approving a client for a short-term loan. One company may regard a score of 700 as the cut-off point, while others may accept 650, or 600. Fernovo, using its super smart technology, has granted loans to customers with a score of 300 or 350.
Many short-term lenders advertise their services according to the customer’s needs. For example, they will often market their loans based on how long the customer wants to keep the loan active, and how much they want to borrow. Many clients apply for multiple short-term loans from lenders once they are comfortable with them. Clients can decide whether they wish to repay the loan in a single payment, or over multiple instalments. With so much personalisation, it’s no wonder that short-term loan providers are a good choice for clients.
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